If the MPC is .75 and the federal government spends an extra $200 billion, how much...

Question

Question

If the MPC is .75 and the federal government spends an extra $200 billion, how much will real GDP be expected to increase?

Answer 1

Answer #1

Since, DY = Ilmpe pas Where Das = Govt. spending Charge mpc = 0.75 DY= Real and charge = ? DY = 2 x 200 z 4x200 BY = $800 =

Answer 2

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