Which of the factors of industrialization does Baines cite in the reading? Check all that apply water power to run machines rive
1 answer:
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Answer:
Change in GDP = $40 billion
Explanation:
given data
increase investment = $8 billion
MPC = 0.80
to find out
Change in GDP
solution
we get here Change in GDP that is express as
Change in GDP = Change in Investment × Expenditure multiplier ..............................1
and here Expenditure multiplier =
Expenditure multiplier =
so here put value in equation 1
Change in GDP = $8 billion ×
Change in GDP = $40 billion