Business, 07.11.2019 01:31 jayjay5246

Calculate the values for each of the questions. assume that in each country there are no taxes, international trade, or inflation and that interest rates are fixed. 1. the italian government decides to stimulate the economy by sending checks worth $70 billion to italian consumers. if the government spending multiplier is 1.5 , calculate the mpc to determine the final change in italy's real gdp due to the transfer. give your answer as a whole number in billions of dollars. 2. the greek government decides to introduce new austerity measures, which reduce government direct spending by $16 billion. greece has a marginal propensity to consume of 0.6 . what will be the final change in real gdp as a result of this decreased spending.

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Calculate the values for each of the questions. assume that in each country there are no taxes, inte...