Imagine there are two countries that are identical, except for their marginal propensities to consume (MPC). They both e

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Imagine there are two countries that are identical, except for their marginal propensities to consume (MPC). They both e

Post by answerhappygod »

Imagine there are two countries that are identical, except for
their marginal
propensities to consume (MPC). They both experience the same
decrease
in consumption spending. Country A has a MPC=0.9 and
Country B has a MPC=0.6. If both governments implement the
same
fiscal policy response will the effects be the same? Why/ why
not?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”