Answer the following questions: Instructions: In part a, round your answers to 2 decimal places. In part b, round your answers to 1 decimal place. In part c, enter you answers as a whole number. a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.6 1 b. What will the multiplier be given the MPC values below? Fill in the table with your answers. MPC Multiplier 1 0.90 0.67 0.50 c. 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? bilion How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC instead is 0.67? billion
Answer the following questions: Instructions: In part a, round your answers to 2 decimal places. In part b, round your answers to 1 decimal place. In part c, enter you answers as a whole number. a. What will the multiplier be given the MPS values below? Fill in the table with your answers. MPS Multiplier 0.4 0.6 1 b. What will the multiplier be given the MPC values below? Fill in the table with your answers. MPC Multiplier 1 0.90 0.67 0.50 c. 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? bilion How much of a change in GDP will result if firms increase their level of investment by $8 billion and the MPC instead is 0.67? billion
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 5SQP
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Question
Transcribed Image Text:Answer the following questions:
Instructions: In part a, round your answers to 2 decimal places. In part b, round your answers to 1 decimal place. In part c, enter your
answers as a whole number.
a. What will the multiplier be given the MPS values below? Fill in the table with your answers.
MPS
Multiplier
0.4
0.6
1
b. What will the multiplier be given the MPC values below? Fill in the table with your answers.
MPC
Multiplier
1
0.90
0.67
0.50
c. 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 instead is O.67?
%24
billion
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