Find the multiplier, Given an increase in spending of

Find the multiplier

Reference no: EM1368398

Given an increase in spending of $1,000, and a Marginal Propensity to Consume (MPC) of 80% (8/10), what would be the total increase in the GDP (as a result of the Multiplier?) What would the Multiplier be? Please show all work to help me clearly understand this problem.

Reference no: EM1368398

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