Question: 4)Suppose the consumption function is C = 0.8 Y and planned investment is 40. Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises

4)Suppose the consumption function is C = 0.8Y and planned investment is 40.

Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises by 30. (a) How much does equilibrium output increase? (b) How much of that increase is extra consumption demand?

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