Business, 09.12.2019 20:31, smithad382

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 = $

Answers: 1

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Suppose that an initial $20 billion increase in investment spending expands gdp by $20 billion in th...