Answered You can hire a professional tutor to get the answer.

QUESTION

a) Two countries are in a recession. Country A has an MPC of 0.8 and Country B has an MPC of 0.6. In which country will government spending have the

a) Two countries are in a recession. Country A has an MPC of 0.8 and Country B has an MPC of 0.6. In which country will government spending have the greatest impact?

b) If there is a recessionary gap of $100 billion, should the government increase spending by $100 billion to close the gap? Why or why not?

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question