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Business, 28.05.2021 19:00 skyyk8107

Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. Also, assume that GDP and consumption both rise by $24 billion in the second round of the process. Round your answers to 1 decimal place. a. What is the MPC in this economy?
b. What is the size of the multiplier?
c. If, instead, GDP and consumption both rose by $32 billion in the second round, what would have been the size of the multiplier?

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