Question
Consider a closed economy wherein C = 0.60 Yd Â
, t = 0.25 , I = 900 – 30i , G = 800, L = 0.20 Y – 50i , 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 questionSolution
 
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