Question 25 Calculate the total change in aggregate spending if investment increases by $200 billion and the marginal propensity to consume is 0.8. Instructions: Give the answer in billions There is no margin for error in this question. Whole numbers only. Question 26 Calculate the Money Multiplier, given the following information. rrr = .09 Total Deposits: $6300 Total Reserves: $4200 Instructions: Calculate the answer to two decimal points The margin of error .1

Question 25 Calculate the total change in aggregate spending if investment increases by $200 billion and the marginal propensity to consume is 0.8. Instructions: Give the answer in billions There is no margin for error in this question. Whole numbers only. Question 26 Calculate the Money Multiplier, given the following information. rrr = .09 Total Deposits: $6300 Total Reserves: $4200 Instructions: Calculate the answer to two decimal points The margin of error .1

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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The multiplier is an indication of the capacity of money injected in the economy to a. increase investment b. increase welfare c. increase consumption d. increase interest rate e. increase GDP
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