Using the Keynesian cross, if autonomous consumption is $300 and investment is $200, and the marginal propensity to consume is 0.9, while government spending, net exports and taxes are zero, then equilibrium output is
A) $450.
B) $500.
C) $5,000.
D) $950.

Question

Quizplus · Accepted Answer

The Answer of Using the Keynesian cross, if autonomous consumption is $300 and investment is $200, and the marginal propensity to consume is 0.9, while government spending, net exports and taxes are zero, then equilibrium output is
A) $450.
B) $500.
C) $5,000.
D) $950.

Using the Keynesian Cross, If Autonomous Consumption Is $300 and Investment