If the MPC = 3/5, then the government purchases multiplier is 5/3 5/2 5 1.5

Suppose the government wishes to eliminate  an inflationary gap  of $100 billion and the MPC is 0.5. how much must the government cut its spending? b) what would be the effect of the government increasing taxes by this amount?

a)What will the multiplier be given the MPS values below? Fill in the table with your answers.  Instructions: round your answers to 2 decimal places.                               MPS                     Multiplier                 0.0                                     0.4                   0.5                  1.0   b) What will the multiplier be given the MPC values below? Fill in the table with your anwers.                                MPC                    Multiplier                                 1.0                                  0.9                                0.75                                0.5                                0   c) How much of a change in GDP will result if firms increase their level of investment by $ 8 billion and the MPC is 0.80? ( Enter your answers as whole numbers) How much of a change in GDP will result if firms incresese their level of investment by $ 8 billion and the MPC instead is 0.67?

Suppose an initial increase in government spending (G) increased GDP by $50,000. If he simple spending multiplier is 2.5, the size of the initial government spending was