Answered: QUESTION 1 If MPC=0.75 (and there are…

QUESTION 1 If MPC=0.75 (and there are no income taxes) and if government purchases fall by 45, then the IS curve for any interest rate shifts to the left by 60 O 180 O 31.5 O 160 O 45

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 10PA

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