Question: Solve Instructions: Please complete this assigilli left cho exceed about five pages. Please have one group member upload the assignment to ICON. I. You learned

Solve

Instructions: Please complete this assigilli left cho exceed about five pages. Please have one group member upload the assignment to ICON. I. You learned in the Fiscal Policy module that the marginal propensity to save is linked to the fiscal multiplier. (i) 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). (ii) In general, how does an increase in savings affect the effectiveness of fiscal policy and the recovery

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