The Canadian Government decides to inject $10,000,000 into the economy by increasing its spending on infrastructure. If the Marginal Propensity to Consume is .6 or 60% what will be the overall change in GDP/Real Output?

The Canadian Government decides to inject $10,000,000 into the economy by increasing its spending on infrastructure. If the Marginal Propensity to Consume is .6 or 60% what will be the overall change in GDP/Real Output?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 7P

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Question

The Canadian Government decides to inject $10,000,000 into the economy by increasing its

spending on infrastructure. If the Marginal Propensity to Consume is .6 or 60% what will be the

overall change in GDP/Real Output?

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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