Business, 17.04.2020 18:29 edgarlimon2000
Suppose the economy is in a recession and the president wants to stimulate production and create jobs. To do this, he has decided to increase government spending. Some of his economic advisors are suggesting the marginal propensity to consume (MPC) has a value of 0.9 and others are suggesting the value is 0.8. How will this difference in the value of the MPC affect the president’s decision regarding the dollar amount of the increase in government spending?
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Suppose the economy is in a recession and the president wants to stimulate production and create job...
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