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suppose that an initial $40 billion increase in investment spending expands gdp by $40 billion in the first round of the multiplier process. also assume that gdp and consumption both rise by $32 billion in the second round of the process. instructions: round your answers to 1 decimal place. a. what is the mpc in this economy? .8 b. what is the size of the multiplier? c. if, instead, gdp and consumption both rose by $36 billion in the second round, what would have been the size of the multiplier?
Sagot :
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