MindTap - Cengage Learning com/staticb/ui/evo/index.html?deploymentld-5981412353502464190243042516&eISBN=978085713 CENGAGE | MINDTAP odule Six Quiz ack to Assignment Attempts Keep the Highest / 3 6. The multiplier effect of a change in government purchases Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn The marginal propensity to consume (MPC) for this economy is and the spending multiplier for Suppose the government in this economy decides to increase government purchases by $300 billion. The inc to an increase in income, generating an initial change in consumption equal to . This incre second change in consumption equal to . The total change in demand resulting from the in The following graph shows the aggregate demand curve (ADD, ) for this economy before the change in governme