Suppose the MPC is 0.9. There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30...
rinapeSuppose 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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