Question
Part II. Fiscal Policy: Suppose the US federal government cut taxes by $400 billion. If the marginal propensity to consume is 0.7, what happens to
Part II. Fiscal Policy:
Suppose the US federal government cut taxes by $400 billion. If the marginal propensity to consume is 0.7, what happens to the following in the US? Do they rise or fall? By what amounts?
a. Consumption
b. Private saving
c. Public saving
d. National saving
e. Investment
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
