Economic

Suppose that GDP

I MD OO Interest rate(%) O 10 20 30 40 50 60 70 Quantity of money\fc. Given the same value of the multiplier, what will be the new level of GDP? $ billion.a. Suppose that GDP in Rutland is $600 billion and the government increases spending by $30 billion. If the multiplier equals 4, what is the new level of GDP? $ billion. b. Suppose that, as a result of the increase in GDP, the price level in Rutland also rises, causing the demand for money to increase by $10 billion. Given the graph of the money market, graph(A), and investment demand, graph(B), by how much will investment fall? $ billion. OK