(Solution) If You Know That Investment Is Quite Volatile And You Would Prefer To See The Economy With Smaller Rather Than Larger Swings In Economic Activity, | Snapessays.com
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(Solution) If you know that investment is quite volatile and you would prefer to see the economy with smaller rather than larger swings in economic activity,


If you know that investment is quite volatile and you would prefer to see the economy with smaller rather than larger swings in economic activity, then a) you would prefer a large MPC b) you would prefer a small MPC c) the value of the MPC is not relevant because the problem is investment behaviord) the value of the MPC is not relevant because policy authorities can smooth out cycles with appropriate policy action

 

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This question was answered on: May 23, 2022

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