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Let's say there's an economy where people have an MPC of 0.90. The government increases its spending by $100 million to stimulate the economy. When
Let's say there's an economy where people have an MPC of 0.90. The government increases its spending by $100 million to stimulate the economy. When the government spends $100 million, output and income rise by that same amount. I've put this in the table you can see to your right. Econ Tutor Like you pointed out, not all households will be personally affected right away. The government only provided stimulus to some
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