Answer the questions below:
(A)Plot the line showing where income and spending are equal. What does the slope of this line equal?
(B)Using the information in the table below, plot the line showing the relationship between expenditure and income. What is the slope of this line?
(C)Using the graphical approach and the information in the above table, show what happens to the spending balance if government expenditures increase by 9.
(D)Using the graphical approach and the information in the above table, show what happens to the spending balance if the MPC increases to 0.9.
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