Suppose the decision by the government is to increase government purchases by 100$ million. The marginal propensity
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Suppose the decision by the government is to increase government purchases by 100$ million. The marginal propensity to consume in the economy is .75. How does this decision affect the 2 different lines of an IS-LM model? Add lines if needed? How far is the new land from the old line?
Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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