Suppose an economy has no imports and no income taxes its
Suppose an economy has no imports and no income taxes. Its marginal propensity to consume (MPC) is $0.75, and its real GDP level is $250 billion. Businesses increase their investment by $10 billion.
Calculate the multiplier and the change in GDP.
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suppose an economy has no imports and no income taxes its marginal propensity to consume mpc is 075 and its real gdp
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