Question
Suppose that the IS curve of an economy is: Y-720-42 r. The marginal propensity to consume is 0.7 Suppose that the government increases government purchase
Suppose that the IS curve of an economy is:
Y-720-42 r.
The marginal propensity to consume is 0.7
Suppose that the government increases government purchase by 11 units which leads to a 4 percentage points increase in the interest rate. Calculate the resulting change in income.
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Legal Fundamentals for Canadian Business
Authors: Richard A. Yates
4th edition
133370283, 978-0133370287
