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Author Question: Assume there is no government or foreign sector. If the MPSis 0.2, a $40 billion decrease in planned ... (Read 812 times)

Mollykgkg

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Question 1

Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by


◦ $1 billion.
◦ $5 billion.
◦ $10 billion.
◦ $100 billion.

Question 2

Assume there is no government or foreign sector. If the 
MPS is 0.2, a $40 billion decrease in planned investment will cause aggregate output to decrease by


◦ $20 billion.
◦ $50 billion.
◦ $80 billion.
◦ $200 billion.


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Marked as best answer by Mollykgkg on Apr 19, 2019

pikon

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Mollykgkg

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Reply 2 on: Apr 19, 2019
Gracias!


strudel15

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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