Economic questions please help thanks?

Question

Autonomous spending rises by $10 billion and Real GDP rises by $66 billion. What does the marginal propensity to consume equal?

Answer 1

If Read GDP increases by $66 billion following Autonomous Spending increase of $10 bilklion, the multiplier works out to $66 billion/ $10 billion = 6.6

The multi[plier is the simplest Keynesian model is given by

1(1-mpc), where mpc is the marginal propensity to consume.

Therefore, 1/(1-mpc)= 6.6

so, 1- mpc = 1/6.6 = 0.1515

thus, mpc = 1-0.1515 = 0.8485

So the marginal propensity to consume is 0.8485

Answer 2

ΔY/ΔC=1/(1-MPC)

ΔY=+66

ΔC=+10

66/10=1/(1-MPC)

1-MPC=10/66

1-10/66=MPC

MPC=56/66=28/33≈0.84