Question
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall?
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts?
a.Public saving
b.Private saving
c.National saving
d.Investment
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Financial Accounting
Authors: C Thomas,
12th Edition
007760086X, 9780077600860
