The fluctuations in the income level that result from changes in investment spending depend only on the magnitude of the changes in investment spending but not on the size of the MPC tend to be larger if the income tax rate (t) is larger tend to be larger with a larger MPC tend to be larger the larger the marginal propensity to import tend to be larger with a larger MPS
The fluctuations in the income level that result from changes in investment spending depend only on the magnitude of the changes in investment spending but not on the size of the MPC tend to be larger if the income tax rate (t) is larger tend to be larger with a larger MPC tend to be larger the larger the marginal propensity to import tend to be larger with a larger MPS
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQ
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The fluctuations in the income level that result from changes in investment spending
depend only on the magnitude of the changes in investment spending but not on the size of the MPC |
||
tend to be larger if the income tax rate (t) is larger |
||
tend to be larger with a larger MPC |
||
tend to be larger the larger the marginal propensity to import |
||
tend to be larger with a larger MPS |
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