Problem 4 Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause?

Problem 4Suppose the government increases education spending by $20 billion. How much additional consumption will this increase cause? Show your work.

Question:Suppose the government increases education spending by $20 billion. How much additionalconsumption will this increase cause? Show your work.Solution:We are assuming an MPC of 0.75, the...