Business, 10.05.2021 20:00 maronetham6253

1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by $80. The MPC in Normalia is:.
MPS in Normalia is:.
b. Suppose that the MPC in South Pangea is 0.6.
If a South Pangean household earns an extra $100, by how much will they increase their spending?
2. Suppose that the MPC in North Laurasia is .5.
a. What is the spending multiplier for the North Laurasian economy?
b. If the government spends an extra $1000, by how much with the economy grow?

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1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by...