Economics

Suppose that real GDP is initially $14 trillion and the government att

Suppose that real GDP is initially $14 trillion and the government attempts to increase real GDP to $15 trillion. The marginal propensity to consume is 0.8, and every $1.00 increase in real government spending crowds out $0. 50 in real planned investment expenditures. Which increase in government spending below could yield the desired level of […]

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Date: September 2nd, 2020