Answer the following questions:Instructions: Enter your answers rounded to the nearest whole number.a. By how much will GDP change if firms increase their investment by $8 billion and the MPC is 0.90?2$billionb. If the MPC is 0.75?billion

Due to multiplier effect there will be an increasing effect in GDP due to investment.

Answered: a. By how much will GDP change if firms…

a. By how much will GDP change if firms increase their investment by $8 billion and the MPC is 0.9 2$ billion b. If the MPC is 0.75? billion %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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