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Calculate the values of mpc

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Reference no: EM132550697

In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter your responses below rounded to 2 decimal places.

a. A $8 million increase in income leads to a $1,600,000 rise in consumption on domestic items. MPC is therefore , MPW is and the spending multiplier is.

b. A $10 million decrease in income results in a $3 million drop in consumption on domestic items. MPC is therefore , MPW is and the spending multiplier is.

c. A $6 million decrease in income causes a $3 million drop in withdrawals. MPC is therefore , MPW is and the spending multiplier is.

Reference no: EM132550697

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