An economy has no imports and no income taxes. An increase in autonomous expenditure of $5 trillion increases equilibrium expenditure by $50 trillion. Calculate the multiplier and the marginal propensity to consume. What happens to the multiplier if an income tax is introduced? >>> Answer to 2 decimal places. The multiplier is

An economy has no imports and no income taxes. An increase in autonomous expenditure of $5 trillion increases equilibrium expenditure by $50 trillion. Calculate the multiplier and the marginal propensity to consume. What happens to the multiplier if an income tax is introduced? >>> Answer to 2 decimal places. The multiplier is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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