Two closed economies, A and B, have no government sector. In Economy A, households spend 90 cents of every extra dollar they earn. In Economy B, households spend 60 cents of every extra dollar they earn. If both economies experience an identical, positive shock to autonomous investment spending, which of the following statements accurately describes the resulting change in their respective equilibrium outputs?
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Two closed economies, A and B, have no government sector. In Economy A, households spend 90 cents of every extra dollar they earn. In Economy B, households spend 60 cents of every extra dollar they earn. If both economies experience an identical, positive shock to autonomous investment spending, which of the following statements accurately describes the resulting change in their respective equilibrium outputs?
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