There is a striking similarity between the simple multiplier and the deposit multiplier. a. Suppose the marginal propensity to spend out of GDP. z, is 0.5. If autonomous spending increases by $$4, 000$ , fill in Table 1 to the right. (Round your responses to the nearest doliar.) b. The sum of the values in the third column should be: $? Y = $4, 000 + (0.5) \times $4, 000 + (0.5)^{2} \times $4, 000 + \dots$ The total change in GDP for this situation is 5 (Rround your responses to the nearest cent.)

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There is a striking similarity between the simple multiplier and the deposit multiplier. a. Suppose the marginal propensity to spend out of GDP. z, is 0.5. If autonomous spending increases by

$4, 000

, fill in Table 1 to the right. (Round your responses to the nearest doliar.) b. The sum of the values in the third column should be:

? Y = $4, 000 + (0.5) \times $4, 000 + (0.5)^{2} \times $4, 000 + \dots

The total change in GDP for this situation is 5 (Rround your responses to the nearest cent.)

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