If government purchases increased by $20 billion, other things being equal, what would be the resulting change

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If government purchases increased by $20 billion, other things being equal, what would be the resulting change in aggregate demand, and how much of that change would be a change in consumption, if the MPC were
a. 1/3?
b. 1/2?
c. 2/3?
d. 3/4?
e. 4/5?

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Question Posted: Feb 07, 2013 05:53 AM

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If government purchases increased by $20 billion, other things being equal, what would be the resulting change

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