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You meet up with one of your friends and were debating how the government could stimulate the economy after the covid pandemic. He states that
You meet up with one of your friends and were debating how the government could stimulate the economy after the covid pandemic. He states that because in Canada, we save very little mpc= 0.95, that any type of government increase in spending will stimulate the economy WAY more than a country where people save a lot (ex: mpc = 0.5). Do you agree?
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