The closed economy of Sokovia has a GDP of 150 billion dollars and a marginal propensity to save of 02. In theclosed economy of Madripoor the GDP is 160 billion dollars and the marginal propensity to save is 0 25 We caninfer that6.Select one answer:O It takes Sokovia an injection of 10 billion dollars to reach a GDP of 200 billion dollarsO The multiplier in Madripoor is 6.O The multiplier in Sokovia is 4.O It takes Madripoor an injection of 12 billion dollars to reach a GDP of 200 billion dollars.

Multiplier shows that how much of the countries GDP (Y) changes in response to change in the…

The closed economy of Sokovia has a GDP of 150 billion dollars and a marginal propensity to save of 0 2. In the closed economy of Madripoor the GDP is 160 billion dollars and the marginal propensity to save is 0 25 We can infer that Select one answer: O It takes Sokovia an injection of 10 billion dollars to reach a GDP of 200 billion dollars. O The multiplier in Madripoor is 6. O The multiplier in Sokovia is 4. O It takes Madripoor an injection of 12 billion dollars to reach a GDP of 200 billion dollars.

The closed economy of Sokovia has a GDP of 150 billion dollars and a marginal propensity to save of 0 2. In the closed economy of Madripoor the GDP is 160 billion dollars and the marginal propensity to save is 0 25 We can infer that Select one answer: O It takes Sokovia an injection of 10 billion dollars to reach a GDP of 200 billion dollars. O The multiplier in Madripoor is 6. O The multiplier in Sokovia is 4. O It takes Madripoor an injection of 12 billion dollars to reach a GDP of 200 billion dollars.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .
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