=+a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity

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=+a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be?

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Brief Principles Of Macroeconomics

ISBN: 9780324590371

5th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 28, 2024 04:00 AM

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=+a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be?
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=+ 7. Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion.
=+b. Now suppose the economists allow for crowding out. Would their new estimate of the MPC be larger or smaller than their initial one?
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=+a. If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity

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Brief Principles Of Macroeconomics

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