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Author Question: Multiplier EffectsIf a decrease in investment spending of $40 billion results in a $120 billion ... (Read 211 times)

frosh101

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Question 1

Multiplier Effects

If a decrease in autonomous consumption spending of $50 billion results in a $160 billion decrease in equilibrium real GDP, then the multiplier is ________. (Round to the nearest hundredth when appropriate.)
◦ 3.2
◦ 50
◦ 2.2
◦ 0.31

Question 2

Multiplier Effects

If a decrease in investment spending of $40 billion results in a $120 billion decrease in equilibrium real GDP, then the marginal propensity to consume (MPC) is ________. (Round to the nearest hundredth when appropriate.)
◦ 0.67
◦ 0.03
◦ 0.33
◦ 3


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Marked as best answer by frosh101 on Nov 23, 2022

dsd1212

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frosh101

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Reply 2 on: Nov 23, 2022
:D TYSM


T4T

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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