Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Therefore, an increase in government purchases of 25 increases income by 100. That is what we expect to find, because the government-purchase...
Therefore, an increase in government purchases of 25 increases income by 100. That is what we expect to find, because the government-purchase multiplier is 1/(1-MPC): because the MPC is 0.75, the government purchase multiplier is 4. d. What level of government purchases is needed to achieve an income of 1.600?
