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Assume that the marginal propensity to consume is equal to 0.85. If the government increased spending
by $Z, and the real GDP increased by $5000, what is the value of Z?
Calculate the multiplier if the marginal propensity to consume (MPC) is equal to 0.99.
Suppose the government increases spending by $100, as a result real GDP will:
A)increase by less than $100.
B)increase by more than $100.
C)increase by $ 100.
D)none of the above.
If the marginal propensity to consume (MPC) is equal to 0.74, then the marginal propensity to save (MPS) is equal to:
Suppose the government increased spending by $100, and as a result real GDP increased by $2000. Calculate the marginal propensity to consume (MPC).
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