M
Maria Do
Member
Can someone help me with the solution to this question:
In a closed economy with no taxation, the marginal propensity to save is 0.25 and the level of income is £800m. what is the likely level of consumption expenditure resulting from a rise in government expenditure of £100m?
In a closed economy with no taxation, the marginal propensity to save is 0.25 and the level of income is £800m. what is the likely level of consumption expenditure resulting from a rise in government expenditure of £100m?