If consumers decrease their spending by 80 whenever their


a) If consumers decrease their spending by 80$ whenever their disposable income falls by 100$, what is the numerical value of the marginal propensity to consume?

b) What is the numerical value of the multiplier?

c) Using the answers from part(b), if the government raises its spending by 1000$, by how much will output rise?

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Microeconomics: If consumers decrease their spending by 80 whenever their
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