eboaorWhat number replaces the X in the Keynesian table below? The MPC is .75Change in I, C, and GDP for 2 roundsChange IChange C40000XRound 1Round 2TotalⒸ40010000Ⓒ300Change GDP400

Answered: Round 1 Round 2 Total replaces Change…

Round 1 Round 2 Total replaces Change in I, C, and GDP for 2 rounds Change I Change C 400 0 0 X X in the Keynesian table below? Change GDP 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

eboa
or
What number replaces the X in the Keynesian table below? The MPC is .75
Change in I, C, and GDP for 2 rounds
Change I
Change C
400
0
0
X
Round 1
Round 2
Total
Ⓒ400
100
00
Ⓒ300
Change GDP
400

Expert Solution

Step 1: Define marginal propensity to consume.

Marginal propensity to consume (MPC) measures the change in consumption due to a change in income.

Formula:

MPC = (ΔC / ΔY)

Step by step

Solved in 3 steps

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