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In each of the following scenarios, calculate the overall effect on aggregate expenditure, Instructions: Enter numerical values as whole numbers. a. A recent stock market
In each of the following scenarios, calculate the overall effect on aggregate expenditure, Instructions: Enter numerical values as whole numbers. a. A recent stock market boom has Increased household wealth by $20 billion, which Increases consumption by $8 billion, and the marginal propensity to consume in the economy is equal to 0.5. In the new equilibrium, aggregate expenditure will {Click to select) ~ by $ billion. b. Rising interest rates reduce domestic consumption by $4 billion and reduce investment by $3 billion, and the marginal propensity to consume In the economy is equal to 0.5, In the new equilibrium, aggregate expenditure will (Click to select) ~ by $ billion
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