When the savings rate is 1/3, what is the fiscal multiplier (you can ignore taxes)? What is
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- When the savings rate is 1/3, what is the fiscal multiplier (you can ignore taxes)? What is the multiplier when the savings rate is 1/5? Explain what this means for an increase in government spending (G).
- In general, how does an increase in savings affect the effectiveness of fiscal policy and the recovery?
- What are the opportunities and threats?
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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