Question
An economy has a fixed pricelevel, noimports, and no income taxes. MPC is 0.8 0.8, and real GDP is $200 200 billion. Businesses increase investment
An economy has a fixed pricelevel, noimports, and no income taxes. MPC is 0.8
0.8, and real GDP is $200
200 billion.
Businesses increase investment by $2
2 billion.
Calculate the multiplier and the change in real GDP.
The multiplier is
nothing
.
The increase in real GDP is $
nothing
billion.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
