If government purchases of good and services increase by $10 billion when the MPC is .8 and
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Question:
If government purchases of good and services increase by $10 billion when the MPC is .8 and the MPS is therefore .2, then
a. real GDP will increase by $16 billion.
b. real GDP will increase by $20 billion.
c. real GDP will increase by $40 billion.
d. real GDP will increase by $50 billion.
Related Book For
Applied Statistics for Public and Nonprofit Administration
ISBN: 978-1285737232
9th edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
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