Question 2 (3 marks) a. What is the multiplier if households have an MPC of 0.68? (1 mark) b. Create a table similar to

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Question 2 3 Marks A What Is The Multiplier If Households Have An Mpc Of 0 68 1 Mark B Create A Table Similar To 1 (50.93 KiB) Viewed 10 times

Question 2 (3 marks) a. What is the multiplier if households have an MPC of 0.68? (1 mark) b. Create a table similar to Figure 10.8 in your textbook. Assume that the households have an MPC of 0.68 and there is a $8 billion increase to investment spending. For full marks this information must be presented in a table with each answer calculated to 2 decimal places and all rows completed. (2 marks) Round 1 Round 2 Round 3 Round 4 Round 5 Subsequent rounds Total Change in income 8.00 Change in consumption 5.44 Change in savings 2.56