If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by $105 million b. Increase consumption by $9.5 million Decrease consumption by $950 million d. Increase consumption by $200 million

If the MPC is 0.95, then a $10 million increase in disposable income will Increase consumption by $105 million b. Increase consumption by $9.5 million Decrease consumption by $950 million d. Increase consumption by $200 million

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.2P

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