Question
3. What will happen to the impact of higher government expenditure to income if MPC decreases? Will impact increase or decrease? Explain. You can use
3. What will happen to the impact of higher government expenditure to income if MPC decreases? Will impact increase or decrease? Explain. You can use equations and numerical examples.
4. Can monetary policy affect the goods market equilibrium income Y*? If yes, how? Explain. You can use graphs, equations, and numerical examples.
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Intermediate Microeconomics
Authors: Hal R. Varian
8th edition
393934241, 978-0393934243
