Asked by 111

Suppose that the government determined that the amount by which the AD curve had to be shifted directly rightward from point E1

was equal to ​$1.37 trillion. If the government decided that a ​$0.28

trillion increase in real government spending was required to generate this​ shift, what must be the value of the​ MPC?
Answered by 111
wrong answer. Keynesian spending multiplier =1/( 1 - MPC)
Answered by 111
the correct answer is 0.80. Do you know how?
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