Complete the following: a. If the tax multiplier is -1, then the marginal propensity to save is

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Complete the following:

a. If the tax multiplier is -1, then the marginal propensity to save is _________ the marginal propensity to consume.

b. If the government spending multiplier is 8, then the marginal propensity to save equals ______.

c. If the marginal propensity to consume is two times the marginal propensity to save, then the government spending multiplier equals _______.

d. If the marginal propensity to save is 0.5, then the tax multiplier equals _______.

e. If the marginal propensity to save increases by 10 percent, then the government spending multiplier ________.

f. If the marginal propensity to consume goes from 0.8 to 0.85, then the tax multiplier _________.

g. If the tax multiplier increases (in absolute value) from -1 to -2, this means that the marginal propensity to consume has ______ relative to the marginal propensity to save.

h. If the government spending multiplier decreases from 5 to 4, this means that the marginal propensity to save has _______.

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Principles Of Macroeconomics

ISBN: 9781292303826

13th Global Edition

Authors: Karl E. Case,Ray C. Fair , Sharon E. Oster

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