### Bureau of economic analysis-change affect equilibrium

##### Reference no: EM13860731

According to the Bureau of Economic Analysis, during the recession of 2007-2009 household saving as a fraction of disposable personal income increased from a low of just over 1 percent in the first quarter of 2008 to 5 percent in the second quarter of 2009. All else equal, what impact would this change in saving half on the MPC, MPS and multiplier? How would this change affect equilibrium output when planned investment changes.

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