ECON EC21A – The governments of the world decide to cut taxes by $80 million

The governments of the world decide to cut taxes by $80 million. Suppose their marginal propensity to consume is 0.8, what happens to the following? Do they rise or fall and by what amounts? A) world`s public savings B) world`s private savings C) world’s aggregate savings D) world’s investment.Please show workings so I can follow.

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