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Suppose that marginal propensity to consume is 0.8 and marginal product of labor is 15. Holding other things constant, show the effects of the
Suppose that marginal propensity to consume is 0.8 and marginal product of labor is 15. Holding other things constant, show the effects of the following events on the savings if (1) government purchases increase by 200; (2) the government imposes a tax cut of 200; (3) national income increases by 200; (4) the number of workers increases by 10.
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
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