Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE PROVIDE THOROUGH EXPLANATIONS FOR EACH QUESTION. THANK YOU 1a.)Define MPC(marginal propensity to consume) , MPS(marginal propensity to save), APC(average propensity to consume) and APS(average

PLEASE PROVIDE THOROUGH EXPLANATIONS FOR EACH QUESTION. THANK YOU

1a.)Define MPC(marginal propensity to consume) , MPS(marginal propensity to save), APC(average propensity to consume) and APS(average propensity to save).

1b.) Define multiplier effects, based on Keynesian Fiscal policy.

1c.) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy.

1d.)Discuss the long run effects of "Crowding out" due to a short run expansionary fiscal Policy.

1e.)If MPC is larger, is the Multiplierbigger or smaller? why? explain based on the formula.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Authors: Mark Hirschey

12th edition

9780324584844, 324588860, 324584849, 978-0324588866

Students also viewed these Economics questions