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Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0077332648 Exercise 18
Calculate the government-taxation multiplier for each marginal propensity to consume given in Problem 7 and repeated below.
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5
c. The marginal propensity to consume (MPC) = 0.8.
d. What do your results imply about the relative strength of changes in government spending versus changes in taxation for fiscal policy, all else equal?
a. The marginal propensity to consume (MPC) = 0.2.
b. The marginal propensity to consume (MPC) = 0.5
c. The marginal propensity to consume (MPC) = 0.8.
d. What do your results imply about the relative strength of changes in government spending versus changes in taxation for fiscal policy, all else equal?
Explanation
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Fiscal policy:
It is the policy of the ...
Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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