# What is the numerical value of the multi-plier?

Consider the table below when answering the fol-lowing questions. For this hypothetical economy the Show more Consider the table below when answering the fol-lowing questions. For this hypothetical economy the marginal propensity to save is constant at all levels of real GDP and investment spending is autonomous. There is no government. (See pages 270276.) a.Complete the table. What is the marginal pro-pensity to save? What is the marginal propensity to consume? b. Draw a graph of the consumption function. Then add the investment function to obtain C+I. c. Under the graph of C+I draw another graph showing the saving and investment curves. Note that the C+I curve crosses the 45-degree reference line in the upper graph at the same level of real GDP where the saving and invest-ment curves cross in the lower graph. (If not redraw your graphs.) What is this level of real GDP? d. What is the numerical value of the multi-plier? e. What is equilibrium real GDP without invest-ment? What is the multiplier effect from the inclusion of investment? f. What is the average propensity to consume at equilibrium real GDP? g. if autonomous investment declines from \$400 to \$200 what happends to equilibrium GDP? real GDP consumpion saving investment \$2000 \$2200 \$400 \$4000 \$4000 \$6000 \$8000 \$10000 \$12000 Show less

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\$12