Posted by **Lauren** on Sunday, November 14, 2010 at 7:59pm.

How would i approach this question? I don't necessarily want an answer. A "how to" would be better.

(Simple Spending Multiplier) For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending:

a. MPC = 0.9

b. MPC = 0.75

c. MPC = 0.6

## Answer This Question

## Related Questions

- Macro Consumption Question - (Simple Spending Multiplier) For each of the ...
- Macroeconomics - (Simple Spending Multiplier) Suppose that the MPC is 0.8, while...
- MACRO 2 ECON - 2.4 (Investment and the Multiplier) This chapter assumes that ...
- Macroeconomics - Assume the simple spending multiplier equals 10. Determine the ...
- Macroeconomics - Wondering if I am doing this correctly?? If net taxes are ...
- Economics - Suppose that the MPC = 0.8 and that $12 trillion of real GDP is ...
- math - Congress is considering a tax credit program for those who purchase wind...
- Economics - it is felt gdp needs to increase by 700 in order to reach a full ...
- Taxes on level of income - The effect of a decline in taxes on the level of ...
- economics - am i right? dont want to hand in wrong homework again, my mom will ...

More Related Questions