Question 1 (4 points) The idea of a stimulus check or government spending during a recession is to boost real GDP through the multiplier effect. 1) Which method, either giving people money or the government spends the money, do you believe is better at increasing real GDP. Why? 2) Do you believe the multiplier effect could be used to reduced GDP? How could that be done? We discussed and solved for MPC. We found that it remains equal at all points. 3) Could MPC change? What would cause a person to change their MPC? 4) The multiplier effect becomes stronger the higher the MPC is. This means MPS will be smaller. If that is the case, why save money? A/