Business
Business, 10.05.2020 05:57, alonnachambon

Suppose economists observe that an increase in government spending of $15 billion raises the total demand for goods and services by $60 billion.
If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be
1/4
3/4
1/4
4
Now suppose the economists allow for crowding out. Their new estimate of the MPC would be larger or smaller than their initial one

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Answers: 2

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