Question: 10. answer and explain Attempts Keep the Highest / 2 10. Crowding out effect Suppose economists observe that an increase in government spending of $14

10. answer and explain

Attempts Keep the Highest / 2 10. Crowding out effect Suppose economists observe that an increase in government spending of $14 billion raises the total demand for goods and services by $42 billion. If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be . Now suppose the economists allow for crowding out. Their new estimate of the MPC would be than their initial one. Grade It Now Save & Continue Continue without saving

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