1 suppose that with a 350 billion stimulus package the, Ask an Expert

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1. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.3 to r = 0.35. What is the approximate change in the economic impact?

2. Suppose that with a $350 billion stimulus package the spending rate increases from r = 0.8 to r = 0.85. What is the approximate change in the economic impact?

3. Compare the results of Steps 12 and 13. Notice that the change in the spending rate is the same (?r = 0.05) in both cases. Is the change in the economic impact greater when r is small or large?

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Financial Management, Finance

Category:- Financial Management
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