What will the multiplier be given the MPS values below? Fill in the table with y

Question

What will the multiplier be given the MPS values below? Fill in the table with your answers. Instructions: Round all decimals to three places. MPS Multiplier 0 undefined 0.4 0.5 1.0 What will the multiplier be given the MPC values below? Fill in the table with your answers. Instructions: Round all decimals to three places. MPC Multiplier 1.0 undefined 0.9 0.75 0.5 0.0 Instructions: For the questions below enter only whole numbers. 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? $ billion How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC is 0.67? $ billion

Explanation / Answer

Multipliers are 2.5, 2 1

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