Answered: If government spending increases by 60…

If government spending increases by 60 and marginal propensity to consume is 0.8, how big will the increase in equilibrium income be? 65 300 90 250

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 8SQ

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Question 15

If government spending increases by 60 and marginal propensity to
consume is 0.8, how big will the increase in equilibrium income be?
65
300
90
250

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