Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP if the government increases spending by 300 million dollars? 21. What is the level of real GDP if the government decreases spending by 350 million dollars?
Suppose MPS=0.68 and MPI=0.17 19. What is the spending multiplier? 20. What is the level of real GDP if the government increases spending by 300 million dollars? 21. What is the level of real GDP if the government decreases spending by 350 million dollars?
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose MPS=0.68 and MPI=0.17 19.
What is the spending multiplier?
20. What is the level of real GDP if the government
increases spending by 300 million dollars?
21. What is the level of real GDP if the government
decreases spending by 350 million dollars?
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