1、Discuss the long run effects of “crowding out” due to a short run expansionary fiscal policy....

1、Discuss the long run effects of “crowding out” due to a short run expansionary fiscal policy.

2、if MPC(marginal propensity to consume) is larger, is the Multiplier bigger or smaller? Why?

3、if average price of GDP increases, what happens to quantity demanded of real GDP in Aggregate Demand? Explain it based on "Interest-rate Effect"

（each question has to be more than 5 sentences)

Expert Solution

Rahul Sunny answered 2 years ago

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