Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion.(a) if these economists ignore the possibility of crowding out, hat would they estimate the marginal propensity to consume (mpc) to be? (b) now suppose the economists allow for crowding out. would their new estimate of the mpc be larger or smaller than their initial one? explain.

The quinoa seed is in high demand in wealthier countries such as the u.s. and japan. approximately 97% of all quinoa production comes from small farmers in bolivia and peru who farm at high elevations—8,000 feet or higher. the seed is considered highly nutritious. mostly grown and harvested in bolivia and peru, and sold to markets in other countries, the seed is now considered an important for these nations. the governments of bolivia and peru are hopeful that this product will increase the quality of life of their farmers.