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Hello: I need help with the following questions: Question 1: The paradox of saving claims that, in the short run, an increase in the desire
Hello: I need help with the following questions:
Question 1:
The paradox of saving claims that, in the short run, an increase in the desire to save can lead to O a. an increase in the desire to invest. O b. a smaller budget deficit. O c. an increase in equilibrium GDP. Q d. a recession and no increase in total saving. Based on our understanding of the model presented in Chapter 4, we know with certainty that a reduction in marginal propensity to save by households will cause: 0 a. a reduction in output 0 b. no change in investment and no change in output 0 c. an increase in output 0 d. a reduction in investment Based on our understanding of the model presented in Chapter 4, we know with certainty that an increase in investment will cause: 0 a. a reduction in the multiplier O b. a reduction in the marginal propensity to save 0 c. an increase in output 0 d. an increase in the multiplierStep by Step Solution
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