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Question: use the table below to determine the mpc and mps...

Question details

Use the table below to determine the MPC and MPS.

Disposable Income

Consumption

Saving

$1000

$1100

-$100

2000

1600

   400

3000

2100

   900

1. Using the above information, what is the MPC and MPS when the DI is 3000?

MPC =                                                MPS =

2. What equation could you use to determine the Multiplier, using MPC and MPS?

Multiplier =

Multiplier =

3. If there is an initial investment spending of $5,000; what would the total change in GDP be?

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