Determine the size of the simple spending multiplier, Macroeconomics

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Determine the size of the simple spending multiplier

Problem

(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 autonomous spending:

a. MPC = 0.9

b. MPC = 0.75

c. MPC = 0.6

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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