Determine the mpe as income increases from 0 to 40000 if

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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?

Reference no: EM13454257

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