11. Critical analysis Q13 Suppose that when your income increases by $300, your consumption expenditures increases by $225. Your marginal propensity to consume (MPC) is . If your MPC was the same as the MPC for the economy as a whole, the expenditure multiplier for the economy would be Thus, a $5 million investment project would increase income by $ million in total.

11. Critical analysis Q13 Suppose that when your income increases by $300, your consumption expenditures increases by $225. Your marginal propensity to consume (MPC) is . If your MPC was the same as the MPC for the economy as a whole, the expenditure multiplier for the economy would be Thus, a $5 million investment project would increase income by $ million in total.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.1P

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14. Given this diagram; what is the level of I (investment spending)? 15. Given this diagram; what is the level of Xn (net exports)? 16. Given this diagram; what is the mpc (marginal propensity to consume?
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