Question
In a closed economy, national output or GDP ( Y ) and government spending ( G ) is fixed in a given year. Marginal propensity
In a closed economy, national output or GDP (Y) and government spending (G) is fixed in a given year. Marginal propensity to consume (MPC) is 0.6. Now the government raises taxes (T) by $100 billion. What would happen to the following? Do they rise or fall? By how much?
a. Public saving ___?
b. Private saving ___?
c. National saving ___?
d. Investment ___?
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Plenitude The New Economics Of True Wealth
Authors: Juliet Schor
1st Edition
1594202540, 9781594202544
