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Suppose that investment spending decreases by $300 and no leakages occur except household saving. Assume further that households have a marginal propensity to save of 0.4 The spending multiplier in this case is 120 and the total or cumulative change in aggregate demand or spending as a result of the change in investment would be 180 sign. $ Enter numbers only rounded to one decimal place (no dollar sign). If negative, enter the minus (-)

Suppose that investment spending decreases by $300 and no leakages occur except household saving. Assume further that households have a marginal propensity to save of 0.4 The spending multiplier in this case is 120 and the total or cumulative change in aggregate demand or spending as a result of the change in investment would be 180 sign. $ Enter numbers only rounded to one decimal place (no dollar sign). If negative, enter the minus (-)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that investment spending decreases by $300 and no leakages occur except household saving. Assume further that i households have a marginal propensity to save of 0.4 The spending multiplier in this case is 120 and the total or cumulative change in aggregate demand or spending as a result of the change in investment would be 180 sign. - Enter numbers only rounded to one decimal place (no dollar sign). If negative, enter the minus (-)
Transcribed Image Text:Suppose that investment spending decreases by $300 and no leakages occur except household saving. Assume further that i households have a marginal propensity to save of 0.4 The spending multiplier in this case is 120 and the total or cumulative change in aggregate demand or spending as a result of the change in investment would be 180 sign. - Enter numbers only rounded to one decimal place (no dollar sign). If negative, enter the minus (-)
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