Question
True or false with clear explanations (no graph needed). Need asap, thank you ! Consider a standard Keynesian model but with two types of consumers,
True or false with clear explanations (no graph needed). Need asap, thank you !
Consider a standard Keynesian model but with two types of consumers, A who have low marginal propensities to consume and B who have high marginal propensities to consume.
The government wants to stimulate the economy while balancing the budget. If spending is targeted equally on both types of consumers, but taxes are levied in greater amount on B consumers, then the balanced-budget multiplier will be greater than one.
Answer true or false. Please briefly explain your answer.
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