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Suppose the government engages in increased purchases of goods and services. For each of the income groups in the table, what is the value of
Suppose the government engages in increased purchases of goods and services. For each of the income groups in the table, what is the value of the multiplierthat is, what is the bang for the buck from each dollar the government spends on government purchases of goods and services in each income group? Income range Marginal propensity to consume Bang for the Buck $0$20,000 0.9 $20,001$40,000 0.8 $40,001$60,000 0.7 $60,001$80,000 0.6 Above $80,000 0.5
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