By how much will local gdp increase as a result

Reference no: EM132151216

Question: Bayou Sans Espoir, LA, has been experiencing a mini-recession because of the significant decline in crude oil prices and cuts in state subsidies to its crawfish packing plant. As a result of falling oil prices, the oil companies operating in Bayou Sans Espoir have reduced investment spending in the area by $8 mil; Cajun Crawfish, the largest crawfish packing operation, has reduced local investment by $500,000. a.)a. If the local marginal propensity to consume is 0.75, by how much has decreased investment spending reduced local gross domestic product and income?

The question: The Chinese have discovered crawfish (miniature lobster on menus in China) and have placed new orders with Cajun Crawfish amounting to $6 mil annually. By how much will local GDP increase as a result of the increase in crawfish sales? Show all work

Reference no: EM132151216

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By how much will local gdp increase as a result : The Chinese have discovered crawfish (miniature lobster on menus in China) and have placed new orders with Cajun Crawfish amounting to $6 mil annually.

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