Question
1. In an economy with marginal propensity to save (MPS) of .4, what effect will an increase of $100 in government spending have on equilibrium
1. In an economy with marginal propensity to save (MPS) of .4, what effect will an increase of $100 in government spending have on equilibrium and what effect a tax cut of $100 will have on equilibrium.
2. Explain the difference between national debt and deficit budget.
3. Calculate regular multiplier (K) and the net tax multiplier with MPC = .9
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Microbiology A Systems Approach
Authors: Marjorie Kelly Cowan
5th Edition
1259947963, 9781259947964
