What is the marginal propensity to expend

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Reference no: EM13153409

Suppose when income is $10,000 aggregate expenditures are also $10,000, and if income were hypothetically $0 aggregate expenditures would be $2,500.

a. At an income of $10,000, what are induced expenditures?

b. At an income of $10,000, what are autonomous expenditures?

c. What is the marginal propensity to expend?

d. What is the multiplier?

Reference no: EM13153409

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