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Business, 12.08.2020 08:01 yousifgorgees101
Suppose that when your income increases by $300, your consumption expenditures increases by $240.
Your marginal propensity to consume (MPC) is .
If your MPC was the same as the MPC for the economy as a whole, the expenditure multiplier for the economy would be .
Thus, a $4 million investment project would increase income by $ million in total.
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Suppose that when your income increases by $300, your consumption expenditures increases by $240.
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