Hey Course hero Team,
I just want to ensure that I am on the right path with this problem.
In 1929, real GDP in the US was $976 billion (in 2005 dollars). By 1933, real GDP had fallen to $716b. Over the same period, real investment spending declined by $83b. Ignoring all other possible exogenous spending changes, estimate the size of the investment multiplier and then use this to estimate the MPC.
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