1: What happens when any of the determinants of the components of GDP change? Explain why each step in the process occurs. Use written explanations Question 2: compare the ultimate effects of an increase in interest rates in an economy with a low marginal propensity to consume with those in an economy that has a larger marginal propensity to consume, explain why? Question 3: Explain why the multiplier effect of an increase in consumption spending $100 billion is larger or smaller than the effect of a tax decrease of $100 billion. Please explain why Question 4: Using the income expenditure model, what this the expected effect(increase, decrease, or no effect) of an increase in inventories on next period real GDP levels