Question
With the economy in a recession due to inadequate demand, the government increases its purchase by $2,000. The marginal propensity to consume is 1/3. How
With the economy in a recession due to inadequate demand, the government increases its purchase by $2,000. The marginal propensity to consume is 1/3. How large is the increase36.With the economy in national income?
| a. 6000. | ||
| b. 2000. | ||
| c. 3000. | ||
| d. 4000. |
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
