# If there is a recessionary gap of \$1,000 and we live in a society where we spend 75% of our Disposable Income, how much would the government need to increase

2. If there is a recessionary gap of \$1,000 and we live in a society where we spend 75% of our Disposable Income, how much would the government need to increase
Purchases to close this gap? What if our MPC were .90 instead? 3. If the Marginal Propensity to Consume is .90 and because of Bernanke’s actions on Tuesday,
Investment increases by \$250, how much would output increase by? 4. Suppose C=300+.75(DI), Investment equals \$1000, Purchases and Taxes equal \$1200, and Net
Exports equals -\$100. Calculate the equilibrium level of output. Assume that Purchases increase to \$1300, calculate the new equilibrium level of output using the
familiar (longer) technique and then use multiplier analysis to verify your answer.

## IN FRANKENSTEIN, WHY DOES VICTOR TURN TO THE STUDY OF MATHEMATICS, AND WHAT PREVENTS…

In Frankenstein, why does Victor turn to the study of mathematics, and what prevents him from continuing this study?

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