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In order to financialy stimulate the nation, the Fed governm

Paper help Economics In order to financialy stimulate the nation, the Fed governm

Economics

In order to financialy stimulate the nation, the Fed governm

In order to financialy stimulate the nation, the Fed government injuected $900 billion dollars into… Show more In order to financialy stimulate the nation, the Fed government injuected $900 billion dollars into the economy. Results were less than spactular. One reason could have been failure to understand the Marginal Propensity to Consume (MPC). Asuume MPC was only 0.4 How muc h of the $900 billion went to increased comsumption. Where did the rest of teh money go? Please show all math with as clear as explanition as possible Using MPC =0.4 what is the multiplier (the actual value please What wast eh total change in spending as a result of the stimulus package • Show less

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