Answer the following: a. MPS = .4. What is the governmen
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Answer the following: a. MPS = .4. What is the government spending multiplier? b. MPC = .9. What is the government spend
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Answer the following: a. MPS = .4. What is the government spending multiplier? b. MPC = .9. What is the government spending multiplier? c. MPS = .5. What is the government spending multiplier? d. MPC = .75. What is the tax multiplier? e. MPS = .1. What is the tax multiplier? f. If the government spending multiplier is 6, what is the tax multiplier? g. If the tax multiplier is -2, what is the government spending multiplier? h. If government purchases and taxes are increased by $100 billion simultaneously, what will the effect be on equilibrium output (income)?
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