Suppose mpc is 07 government spending increases by 10


Suppose MPC is 0.7. Government spending increases by $10 billion, and taxes decrease by $5 billion. How would the following items change, and by how much?

  1. Disposable income
  2. Private saving
  3. Public( Government) saving
  4. Equilibrium investment

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Business Economics: Suppose mpc is 07 government spending increases by 10
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