According to the Keynesian-cross analysis, if the marginal propensity to consume is 0.6 and government expenditures andautonomous taxes are both increased by 100, equilibrium income will rise by:0.100.150.250. In the Keynesian-cross model, if the MPC equals 0.75, then a $3 billion decrease in taxes increases planned expendituresbyand increases the equilibrium level of income by$3 billion; $9 billion$2.25 billion; $9 billion$2.25 billion; $2.25 billion$3 billion; $3 billion

According to the Keynesian cross model, the aggregate expenditure is equal to the income of a…

According to the Keynesian-cross analysis, if the marginal propensity to consume is 0.6 and government expenditures and autonomous taxes are both increased by 100, equilibrium income will rise by: 0. 100. 150. 250.

According to the Keynesian-cross analysis, if the marginal propensity to consume is 0.6 and government expenditures and autonomous taxes are both increased by 100, equilibrium income will rise by: 0. 100. 150. 250.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the marginal propensity to consume increases, that will: Shift the consumption function downwards Lead to the consumption function becoming flatter Shift the consumption function upwards Lead to the consumption function becoming steeper