Business
Business, 28.06.2019 20:50, kcwolford03

Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. if these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (mpc) to be . now suppose the economists allow for crowding out. their new estimate of the mpc would be than their initial one.

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