Answered: If MPC =.6 and government purchases…

If MPC =.6 and government purchases increases by $5 billion, GDP will increase by $3 billion $30 billion $12.5 billion $1.25 billion

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 12SQ

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Question

If MPC =.6 and government purchases increases
by $5 billion, GDP will increase by
$3 billion
$30 billion
$12.5 billion
$1.25 billion

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