If the marginal propensity to consume is 0.8 and marginal propensity to import is 0.3, then an increase in exports by 100 will cause equilibrium GDP to increase by

Name: If the marginal propensity to consume is 0.8 and marginal propensity to import is 0.3, then an increase in exports by 100 will cause equilibrium GDP to increase by
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Explanation:The multiplier is 1/(1-MPC-MPI) = 1/(1-0.8-0.3) = 1/0.1 = 10. So, an increase in exports by 100 will cause equilibrium GDP to increase by 100 * 10 = 1000.

If the Marginal Propensity to Consume Is 0