Friday, 7 March 2014
Suppose the MPC is 0.9. There are no crowding out or investment accelerator effects. If the...
Suppose the MPC is 0.9. There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $30 billion, then by how far does aggregate demand shift to the right?
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