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Suppose that the real GDP of a country is in equilibrium at $480 billion.

Now suppose that planned investment decreases by $4 billion, and that this decrease causes real GDP to shift to a new equilibrium level of $470 billion.
 
Instructions: In part a, round your answer to 1 decimal place. In part b, round your answer to 2 decimal places.
 
a. What is the spending multiplier for this country?
 
     
 
b. What is the marginal propensity to save (MPS) for this country?
 

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