According to the Bureau of Economic Analysis, during the recession of 20082009, household saving as a fraction
Question:
According to the Bureau of Economic Analysis, during the recession of 2008–2009, household saving as a fraction of disposable personal income increased from a low of just over 1 percent in the first quarter of 2008 to 5 percent in the second quarter of 2009. All else equal, what impact would this change in saving have on the MPC, MPS, and multiplier? How would this change affect equilibrium output when planned investment changes?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
Question Posted: