Suppose the multiplier is 3 the marginal tax rate is 20 and


Suppose the multiplier is 3, the marginal tax rate is 20%, and the marginal propensity to consume out of disposable income is 0.9. If government spending increases by $10 billion, then would national saving increase or decrease, and by how much?

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Business Economics: Suppose the multiplier is 3 the marginal tax rate is 20 and
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