If the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will increase by $15 billion. increase by $2.4 billion. decrease by $3.75 billion. increase by $3.75 billion.
If the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will increase by $15 billion. increase by $2.4 billion. decrease by $3.75 billion. increase by $3.75 billion.
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 13SQ
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If the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will
- increase by $15 billion.
- increase by $2.4 billion.
- decrease by $3.75 billion.
- increase by $3.75 billion.
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