Multiplier and crowding-out effects
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Multiplier and crowding-out effectsQuestions
- Why is the crowding-out effect important?
- What is the Keynesian multiplier?
- If the Marginal Propensity to consume (MPC) is .9, what would be the change in GDP from an investment expenditure increase of $500 be?
- If the marginal propensity to consume is 0.9 in a closed economy, what would be the effect on GDP of a $20 billion decline in investment spending?
- Does the slope of the aggregate expenditures curve in the Keynesian model equal the marginal propensity to consume?
- How does the marginal propensity to consume relate to the Keynesian multiplier?
- If the marginal propensity to consume is .9, then what is the marginal propensity to save?
- What is the mathematical formula for the marginal propensity to consume?
- How does the Keynesian multiplier relate to the marginal propensity to consume?
- How does the Keynesian multiplier relate to the marginal propensity to save?