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1. Use the numbers to answer the following questions:
Income
Spending
$0
$12,000
$40,000
$36,000
a) What is autonomous spending?
b) What is induced spending when income = $40,000?
c) What is the mpe as income increases from $0 to $40,000?
d) What is the spending multiplier?
e) If autonomous spending increases by $50,000, what will happen to income?
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