Question
a) What will the multiplier be when the MPS is 0.4, .6, and 1? b) How much of a change in GDP will result if
a) What will the multiplier be when the MPS is 0.4, .6, and 1?
b) How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is .80? If the MPC is .67?
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
