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25 May, 23:23

Assume that the mpc is 0.85 and investment spending rises by $100 million. how much consumption spending will this generate in the second round of spending?

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  1. 25 May, 23:43
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    I think first of all you have to divide 100 by 0.85 and time by the answer. so it will be 117.6 * 60 = 7056.
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