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C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y.
Calculate the multiplier for I(investment).
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- Interest rate 4% 3% + $50 500 530 0₂ D₁ Savings, investment, government borrowing (millions of dollars) Consider the graph of Nation A which is in recession and in order to increase the economy the government chooses to raise the spending and decides to borrow $ 50 million to construct famous economists statues. Decide which of the given statements is true? a) There will be an increase in investment spending beyond $530 million. b) There will be a decline in investment spending to $480 billion. c) There will be an increase in consumption of $30 million. d) There will be a net change in aggregate spending of 30 million.Increasing government purchases of goods and services would have a bigger multiplier effect on real GDP than decreasing taxes, dollar for dollar. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b True FalseIf MPC Is 0.5 so what is MPS ( define as well)
