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© 2000-2003
Douglas A. Ruby


Macroeconomic Theory
The Spending Multiplier
1) You may adjust the value for the Change in Autonomous Expenditure,
Marginal Propensity to Consume (MPC), or Tax Rates: by clicking on the boldfaced numbers in the appropriate number box. Just click on any of these three numbers and enter a new value.
2) Note the following:
  • $-50,000.00 < Change in Ao < $50,000.00,
  • 0.010 < MPC < 1.00
  • 0.010 < Tax Rate < 1.00
3) Press the Spending button to display the process.
4) Press Reset to start over.