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Business, 24.03.2020 01:03 jdkrisdaimcc11
Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in the first round of the multiplier process. Also assume that GDP and consumption both rise by $8 billion in the second round of the process. A) What is the MPC in this economy?
B) What is the size of the multiplier?
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Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in th...
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