The multiplier is 1/(1-MPC) = 1/(1-0.8) = 1/.02=5. Thus, if

The multiplier is 1/(1-MPC) = 1/(1-0.8) = 1/.02=5. Thus, if autonomous consumption were to rise by $… Show more The multiplier is 1/(1-MPC) = 1/(1-0.8) = 1/.02=5. Thus, if autonomous consumption were to rise by $100, then equilibrium real GDP would increase by what amount? • Show less

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