In the simple Keynesian model with no government and foreign sectors, assume that full employment occurs at an output level of $10,000. With a marginal propensity to consume of 0.5 and equilibrium output at $9,600, by how much will investment spending have to increase to move the economy to full employment?
A) $100
B) $400
C) $200
D) $50

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The Answer of In the simple Keynesian model with no government and foreign sectors, assume that full employment occurs at an output level of $10,000. With a marginal propensity to consume of 0.5 and equilibrium output at $9,600, by how much will investment spending have to increase to move the economy to full employment?
A) $100
B) $400
C) $200
D) $50

In the Simple Keynesian Model with No Government and Foreign