Answer the following questions:Instructions: In part a, round your answers to 2 decimal places. In part b, round your answers to 1 decimal place. In part c, enter youranswers as a whole number.a. What will the multiplier be given the MPS values below? Fill in the table with your answers.MPSMultiplier0.40.61b. What will the multiplier be given the MPC values below? Fill in the table with your answers.MPCMultiplier10.900.670.50c. How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.80?2$billionHow much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC instead is 0.67?billion

MPC is known as marginal propensity to consume which is proportion of extra income consumed. MPS is…

Answered: a. What will the multiplier be given…

a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.6 1

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 10QP

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