if the mpc is 0.75 what is the size of the multiplier and the total change...
Homework Answers
Answer
Multiplier =1/(1-MPC)
=1/(1-0.75)
=4
change in real GDP=intial change in spending * multiplier
=10*4
=$40 billion
the GDP demanded increases by $40 billion
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if the mpc is 0.75 what is the size of the multiplier and the
total change...
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