a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9? Instructions: Round your answer to the nearest whole number. Change in GDP $ 9 billion

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Question
100%
ingr
Income (GDP = DI)
$480
520
560
600
640
680
720
760
800
Consumption
512
536
560
504
608
632
b. If the MPC is 0.75?
656
680
704
Saving
$-32
-16
0
16
32
48
64
80
96
What is the value of the marginal propensity to consume?
APC
Instructions: Round your answer to the nearest whole number.
Change in GDP =
billion.
1.067
0.990
0.880
APS
-0.067
0.027
a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9?
Instructions: Round your answer to the nearest whole number.
Change in GDP-
9 billion.
0.120
Transcribed Image Text:ingr Income (GDP = DI) $480 520 560 600 640 680 720 760 800 Consumption 512 536 560 504 608 632 b. If the MPC is 0.75? 656 680 704 Saving $-32 -16 0 16 32 48 64 80 96 What is the value of the marginal propensity to consume? APC Instructions: Round your answer to the nearest whole number. Change in GDP = billion. 1.067 0.990 0.880 APS -0.067 0.027 a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9? Instructions: Round your answer to the nearest whole number. Change in GDP- 9 billion. 0.120
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