How could a greater budget deficit increase the trade deficit? What happens to the multiplier if there is an increase in the marginal propensity to consume? What would likely happen to the level of...



  1. How could a greater budget deficit increase the trade deficit?

  2. What happens to the multiplier if there is an increase in the marginal propensity to consume?

  3. What would likely happen to the level of economic activity if the government took the necessary steps to reduce the deficit significantly in a relatively short period of time?

  4. When is the most appropriate time to reduce the deficit?



Jun 07, 2022
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