Question
Consider a closed classical economy where the government increases taxes by $800million. If the marginal propensity to consume is 0.75, describe what happens to the
Consider a closed classical economy where the government increases taxes by $800million. If the marginal propensity to consume is 0.75, describe what happens to the following. Please be sure to indicate the magnitude of any change.
(a) Public saving
(b) Private saving
(c) National saving
(d) Investment
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
