Assuming that a country is suffering through a recession.
September 11, 2020
a) Two countries are in a recession. Country A has an MPC of 0.8 and Country B has an MPC of 0.6. In which country will government spending have the
September 11, 2020

Arthur spends his income on pie and whipped cream. He views pie as a good but is neutral about cream, in that he doesn’t care if he consumes it or not. Sofia, on the other hand, will consume pie only with whipped cream. Show Arthur and Sofia’s preference maps. What are their views on the two goods.

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