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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Related Book For
Principles Of Macroeconomics
ISBN: 9780176591977
7th Canadian Edition
Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie
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