7. In which of the following circumstances is expansionary fiscal policy more likely to lead to a...

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7. In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain.

a. when the investment accelerator is large, or when it is small

b. when the interest sensitivity of investment is large, or when it is small

c. when the marginal propensity to import is small, or when it is large

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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