You are given the data concerning Freedonia, a legendary country i. C = 200 + 0.8Y ii. I = 100 a) What is the MPC to consume and what is the MPS? b) Solve for equilibrium income. c) Suppose I changes to 110, what is the new equilibrium level of income? By how much does a $10 increase in planned investment changes equilibrium income? What is the value of multiplie

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Q: Working with Multipliers Help with the following two exercises. 1. Assume the MPC is 0.70 and the…

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Q: 9. With these equations: C = 230 +0.6671 I = 470₁ 6=280-0.137₁ X=470, M=555, land += 13+6.25× What…

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A: Given- MPC=0.7 equlibrium GDP = $100 Billion

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A: MPC stands for Marginal Propensity to Consume. It calculates the change in consumption resulting…