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By how will equilibrium GDP change

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Problem 1 - Suppose the government increases expenditures by 100 billion and the marginal propensity to consume is 0.50. By how will equilibrium GDP change?

Problem 2 - Suppose you deposit $ 2,000 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 040? The change in checking deposits is equal to?

Reference no: EM132456529

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