Question
Suppose that consumers' disposable income increased by $341 billion and their spending increased by $299 billion.What was the MPC? Suppose the government increases spending on
Suppose that consumers' disposable income increased by $341 billion and their spending increased by $299 billion. What was the MPC?
Suppose the government increases spending on education by $30 billion. If the marginal propensity to consume is 0.90, how much will total spending increase?
Step by Step Solution
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Step: 1
To calculate the marginal propensity to consume MPC you can use the formula MPC C...
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
