Question: answer all 1. Complete this chart Show your workiliII change in income and spending. (HINT) 2. Determine the multiplier and the net effect of the
1. Complete this chart Show your workiliII change in income and spending. (HINT) 2. Determine the multiplier and the net effect of the following autonomous changes in spending: a. An influx of $100 billion in government spending when the marginal propensity to consume is 0.75. b. An influx of $250 billion in business investment when the marginal propensity to consume is 0.5. c. An influx of $180 billion in export sales revenue when the marginal propensity to consume is 0.8. 3. If consumer spending increased by $25 billion, resulting as an equilibrium output increasing by $75 billion What is the value of the MPC
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
