11. Suppose that the government increases taxes and government purchases by equal amounts. What happens to the...

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11. Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this budgetneutral change? Explain how your answer depends on the marginal propensity to consume.

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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