Suppose that Amazon decides to spend $10 million on a new distribution center. Ifthe marginal propensity to consume is .8. then how much will GDP go up by once themultiplier process has played out?O $10 millionO $20 millionO $40 milionO $50 million

To measure all the amount of goods and services produced at a given time in a country, gross…

Suppose that Amazon decides to spend $10 million on a new distribution center. If the marginal propensity to consume is .8, then how much wilI GDP go up by once the multfplier process has played out? O $10 million O $20 million O $40 million O 550 milion

Suppose that Amazon decides to spend $10 million on a new distribution center. If the marginal propensity to consume is .8, then how much wilI GDP go up by once the multfplier process has played out? O $10 million O $20 million O $40 million O 550 milion

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Question

Suppose that Amazon decides to spend $10 million on a new distribution center. If
the marginal propensity to consume is .8. then how much will GDP go up by once the
multiplier process has played out?
O $10 million
O $20 million
O $40 milion
O $50 million

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