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Prove that the multiplier is equal to 1/(1-mpc)
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- The investment multipier is 2 of the country now find the value of MPC.Households' consumption function is: C=100+0.7Y Households are more pessimistic about the future and they decide to reduce their consumption by 10 units. What is the intercept of the consumption function now? Type your numeric answer and submitCalculate the value of MPC. The value of MPS is given to be as 0.95