If the marginal propensity to consume is equal to 0.8, and the government injects $50,000,000 of spending into the economy, then the shift of the AD curve BEFORE crowding-out would be
If the marginal propensity to consume is equal to 0.8, and the government injects $50,000,000 of spending into the economy, then the shift of the AD curve BEFORE crowding-out would be
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 11SQ
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If the marginal propensity to consume is equal to 0.8, and the government injects $50,000,000 of spending into the economy, then the shift of the AD curve BEFORE crowding-out would be:
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