Suppose that gdp is currently 25000 and marginal propensity, Ask an Expert

Economics

Q. what might fed do if economy is slowing down?

How does fed control amount of money banks can loan?

Does Federal Reserve prosecute nation's consumers?

Q. I understand MPC formula which is:
Multiplier = 1/1-MPC but I don't understand how to plug in all of extras.

Suppose that GDP is currently $25,000 and marginal propensity to consume is .50. If autonomous investment increases by $5,000, what will GDP be in new equilibrium?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9307626

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