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Homework 1) Define MPC(marginal propensity to consume) and MPS(marginal propensity to save) 2) Define multiplier effects, based on Keynesian Fiscal policy. 3) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy. 4)Discuss the long run effects of “Crowding out” due to a short run expansionary fiscal Policy. 5) Treasure Hunt: a) Go to www.cengage.com/sso (Links to an external site.)Links to an external site. web site. At Bookshelf of Arnold economics of 11th edition, click Economics Course Mate of Economics(11th ed) by Roger A Arnold . Then, click “select chapter” for Ch 11 and try Ch11: Fiscal policy to get access to ” Video Office hours ” left menu bar. Summarize the contents of “Video Office hours”. (3 points)

Homework

 

1) Define MPC(marginal propensity to consume) and MPS(marginal propensity to save)

 

 

2) Define multiplier effects, based on Keynesian Fiscal policy.

 

 

3) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy.

 

 

4)Discuss the long run effects of “Crowding out” due to a short run expansionary fiscal Policy.

 

 

5) Treasure Hunt: 

 

a) Go to www.cengage.com/sso (Links to an external site.)Links to an external site.  web site. At Bookshelf of Arnold economics of 11th edition, click Economics Course Mate of Economics(11th ed) by Roger A Arnold . Then, click “select chapter” for Ch 11  and try Ch11: Fiscal policy  to get  access to ” Video Office hours  ”  left menu bar.     Summarize the contents of “Video Office hours”. (3 points)

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