C+1• (X-IM) C+L+(X- IMM) 120 200 600 Real GDP In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is A)400,000. B)6. C)4. D)4/5. Real spending

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
icon
Related questions
Question
100%

please answer with explanation

45
C + 1,+ (X-IM)
C +1+ (X- IM)
120
200
600
Real GDP
In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the
multiplier is
A)400,000.
B)6.
C)4.
D)4/5.
Bupuads peay
Transcribed Image Text:45 C + 1,+ (X-IM) C +1+ (X- IM) 120 200 600 Real GDP In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is A)400,000. B)6. C)4. D)4/5. Bupuads peay
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inflation and Unemployment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning