Assume a model where marginal propensity to save is 0.2, the marginal propensity to import is 0.1 and the marginal income tax rate is 0.2. What is the size of the expenditure multiplier?
Assume a model where marginal propensity to save is 0.2, the marginal propensity to import is 0.1 and the marginal income tax rate is 0.2. What is the size of the expenditure multiplier?
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 11SQ
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- Assume a model where marginal propensity to save is 0.2, the marginal propensity to import is 0.1 and the marginal income tax rate is 0.2. What is the size of the expenditure multiplier?
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