Given: initial equilibrium = $50,000 and the MPC = .8 a. Calculate the spending multiplier. b....

Given: initial equilibrium = $50,000 and the MPC = .8

a. Calculate the spending multiplier.

b. If planned investment decreases by $1500, calculate the CHANGE in equilibrium.

c. Calculate the new total equilibrium.

Expert Solution

Rahul Sunny answered 2 years ago

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