What is a Multiplier effect? For each of the following values for the MPC, determine the size
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What is a Multiplier effect? For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in autonomous spending:
a. MPC = 0.7
b. MPC = 0.8
c. MPC = 0.5
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