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Economics for Today 9th Edition by Irvin Tucker
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If the marginal propensity to consume (MPC) is 0.90, a $100 billion increase in planned investment expenditure, other things being equal, will cause an increase in equilibrium output of
A) $90 billion.
B) $100 billion.
C) $900 billion.
D) $1,000 billion.
A) $90 billion.
B) $100 billion.
C) $900 billion.
D) $1,000 billion.
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The formula is: 
Here, MPC=.9 We also k...
Economics for Today 9th Edition by Irvin Tucker
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