If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by
A) $50 million.
B) more than $50 million but less than $500 million.
C) $500 million.
D) more than $500 million.
Correct Answer:
Verified
Q122: Table 10-1 Q124: When inflation occurs, consumers Q126: The reason why inflation reduces the value Q129: Figure 10-2 Q130: How is it possible for the economy Q132: When inflation occurs, net exports will Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)realize gains in their
A)increase as
