What is the heat on GDP a $100 billion charge in planned investment the MPC is 0.75? _______ billion.
What is the heat on GDP a $100 billion charge in planned investment the MPC is 0.75? _______ billion.
Homework Answers
Multiplier =1/(1-MPC)
=1/(1-0.75)
=4
change in real GDP=change in investment * multiplier
=100*4
=$400 billion
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What is the heat on GDP a $100 billion charge in planned investment the MPC is 0.75? _______ billion.
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