Why so that saying did correct answe right I don’t know the answer I am just answering to see something about my points because they are negative and I am trying something
Answer: The change will be $400 billion.
Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.
To calculate how much the equilibrium real GDP will change:
STEP1: CALCULATE THE MULTIPLIERS
multipliers = 1 ÷ (1 - MPC)
Where MPC = 0.
Therefore;
Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5
Multipliers = 2
STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;
Multipliers × change in consumption spending
2 × $200 billion = $400 billion
Equilibrium real GDP will change with $400 billion
Not all of the answer choices are here
It seems that you have missed the necessary options for us to answer this question so I had to look for it. Anyway, here is the answer. If Siemens corporation is selling an Argentinean manufacturer a $2 million turbine machine, in the process of this sale, the factor that Siemens should avoid is Selling the Argentineans an off-the-shelf <span>turbine. Hope this helps.</span>
