If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:   Question 25 options:   increase its spending by $800b.   decrease its spending by $1,200b.   increase its spending by $1,200b.   decrease its spending by $800b.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:
 

Question 25 options:

 
increase its spending by $800b.
 
decrease its spending by $1,200b.
 
increase its spending by $1,200b.
 
decrease its spending by $800b.
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