Question: The article can be located here frbsf.org then type The COVID-19 Fiscal Multiplier: Lessons from the Great Recession https://www.frbsf.org/economic-research/publications/economic-letter/2020/may/covid-19-fiscal-multiplier-lessons-from-great-recession/ Please answer this question that are

The article can be located here

frbsf.org then type The COVID-19 Fiscal Multiplier: Lessons from the Great Recession

https://www.frbsf.org/economic-research/publications/economic-letter/2020/may/covid-19-fiscal-multiplier-lessons-from-great-recession/

Please answer this question that are economic based:

According to the article, which component of the recent stimulus package had no counterpart in the 2008-2009 stimulus package? If that component is set aside, how does the composition of the rest of the fiscal response to COVID-19 compare with the composition of the fiscal response to the Great Recession? [8]

Answer:

The article mentions that the fiscal multiplier rises as the marginal propensity to consume (MPC) increases. Why does a rise in MPC increase the fiscal multiplier?[8]

Answer:

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