1. What are the 4 spendin

1. What are the 4 spendin

1. What are the 4 spending groups, the percentage of each group to RGDP, and the factors (exogenous variables ) that that spending depends on?3. What is the relationship between Investment spending and the interest rate? Draw this relationship and explain why it makes sense.4. Explain how the multiplier effect works. What does the multiplier depend on? Why would the multiplier effect be important to President Obama?5. If all you know is that the MPC is .99, calculate the simple multiplier? What?s wrong with this number?

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