Question: (a) The multiplier process depicted in Table 12.1 is based on an MPC of 0.75. Recompute the first four cycles using an MPC of 0.80.

(a) The multiplier process depicted in Table 12.1 is based on an MPC of 0.75. Recompute the first four cycles using an MPC of 0.80.

(b) How much more consumption occurs in the first four cycles?

(c) What is the value of the multiplier in this case?

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