help with those problema please 19 trhough 23
please
Homework Answers
Due to presence of HOMEWORKLIB POLICY, I am answering one question.
20.
a.
Spending multiplier = 1 / (1 - MPC) = 1 / (1 - 0.9) = 1 / 0.1 = 10
b.
If planned investment decreases by 1500, change in equilibrium quantity is given by:
- 1500 X multiplier = - 1500 X 10 = - 15000
c.
New total equilibrium quantity = Initial quantity + change = 50000 - 15000 = $35000.
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help with those problema please 19 trhough 23
please
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