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omework (CH 09) In the first economy (with MPC = 0.5), the $20 billion decrease in investment causes equilibrium output to decrease by billion. In the second economy (with MPC = 0.75), the $20 billion decrease in investment causes equilibrium output to decrease by |$ billion. Therefore, a lower MPC Is associated with a 7 multiplier. Now, confirm your graphical analysis algebraically using the oversimplified multiplier formula: Multiplier = T-MPC For the first economy, with an MPC of 0.5, the effect of the $20 billion decrease in investment is as follows: Change in Equilibrium Output = Change in Total Expenditure x Mullpher Using the same method, the multiplier for the second economy is Grade It Now Save & Continue Continue without saving