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The policy makers pursue a fiscal policy. assume that the marginal propensity to consume is 0.8 and the value of the inflationary gap is $400 billion. should the government incr…

The policy makers pursue a fiscal policy. assume that the marginal propensity to consume is 0.8 and the value of the inflationary gap is $400 billion. should the government incr…
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the policy makers pursue a fiscal policy. assume that the marginal propensity to consume is 0.8 and the value of the inflationary gap is $400 billion. should the government increase, decrease, or not change its discretionary spending

User Skparwal
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Answer:

The government should increase

User Arveen
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