Question
Suppose that the marginal propensity to consume is MPC = 0.75. Assume that the government expenditures increase by $100 billion. Fill out the table below.
Suppose that the marginal propensity to consume is MPC = 0.75. Assume that the government expenditures increase by $100 billion. Fill out the table below.
Marginal propensity to save, MPS
Multiplier
What is the size of the shift in the aggregate demand?
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Essentials of Economics
Authors: Bradley Schiller, Karen Gebhardt
10th edition
125923570X, 978-1259235702
