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Makes fiscal policy - PowerPoint PPT Presentation

Fiscal Policy Wrap-up

Fiscal Policy Wrap-up. Multiplier Effect, Policy Lag & Automatic Stabilizers. Consumption vs. Savings. In the short run => consumption (C) is more powerful than savings ? C => ? AD => ? R-GDP Larger MPC leads to an ? Multiplier In the short run , savings is leakage from GDP

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Makes fiscal policy - PowerPoint PPT Presentation

Fiscal Policy Wrap-up