If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:

Name: If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:
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Quizplus · Accepted Answer

The multiplier effect is calculated as 1/(1-MPC). With MPC = 0.75, the multiplier is 4. Therefore, an increase in G by 100 shifts the IS curve to the right by 100 * 4 = 400.