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What does MPC mean?

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The Federal Government increases spending by $1 billion to develop a new fighter jet. If the MPC in the economy is 0.1, what will be the overall spending effect of the economy?

What does MPC mean?

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MPC or marginal propensity to consume is An economic term for the amount that consumption changes in response to an incremental change in disposable ...

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The Federal Government increases spending by $1 billion to develop a new fighter jet. If the MPC in the economy is 0.1, what will be the overall spending effect of the economy?

$2.19
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Answer questions

1. Discuss the income and consumption relationship make sure to define marginal propensity to consume. If you received an extra dollar, how much of it would you spend?

2. Why is the aggregate demand curve downward sloping? Specify how your explanation differs from the explanation for the downward sloping demand curve for a single product.

3. Explain: "Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply." In each case, specify price level outcomes

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