9. What will the multiplier be when the MPS is 0, 0.4, 0.6, and 1?

What will it be when the MPC is 1, 0.90, 0.67, 0.50, and 0?

How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80? If the MPC instead is 0.67? LO10.5 10. Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in the first round of the multiplier process. If GDP and consumption both rise by $6 billion in the second round of the process, what is the MPC in this economy?

What is the size of the multiplier? If, instead, GDP and consumption both rose by $8 billion in the second round, what would have been the size of the multiplier? LO10.5