1.

Suppose marginal propensity to consume is 0.75 and there is a 20% proportional income tax. Find the change in equilibrium income for the following: (i) Government purchases increase by 20 (ii) Transfers decrease by 20

Answer»

Suppose marginal propensity to consume is 0.75 and there is a 20% proportional income tax. Find the change in equilibrium income for the following:

(i) Government purchases increase by 20

(ii) Transfers decrease by 20



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