Suppose that an initial $20 billion increase in investment spending expands gdp by $20 billion in the first round of the multiplier process. if gdp and consumption both rise by $10billion in the second round of the process, what is the mpc in this economy?
instructions: round your answer to one decimal place
mpc = $
what is the size of the multiplier?
instructions: round your answer to one decimal place
the multiplier = $
if, instead, gdp and consumption both rose by $12 billion in the second round, what would have been the size of the multiplier?
instructions: round your answer to one decimal place
the multiplier = $
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Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Ответ:
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