1.Fiscal Multiplier and Thrifty Consumers. Suppose that the government gave each U.S. legal resident $10 but everyone decided to save the money and not spend it. What would the fiscal multiplier be in...

1.Fiscal Multiplier and Thrifty Consumers. Suppose that the government gave each U.S. legal resident $10 but everyone decided to save the money and not spend it. What would the fiscal multiplier be in this case?

2. Shorter Business Cycles and Lags. Suppose the typical business cycle as shown in Figure 10.2 becomes shorter. Does this make the conduct of active fiscal policy easier or harder? Explain.