Consider a closed economy wherein
C = 0.8 Yd , t = 0.25 , I = 900 – 50i , G = 800, L = 0.25 Y – 62.5i , M/P = 500
Where in Yd = Disposable Income, t is the tax rate, i is the interest rate, G is the government spending. Calculate the Fiscal Policy Multiplier for the above question
For the above question calculate the Monetary Policy Multiplier
A multiple-choice question paper has 50 questions. Each question has got four options, namely A, B, C and D. Each correct answer carries 4 marks and eac...
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