Scenario 10

Scenario 10.2?A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. Assume that the economy is initially in equilibrium.
-Refer to Scenario 10.2. What will happen to the equilibrium real GDP if a tourist visits the country and spends $100 that she brought with her?

A) It will not change.
B) It will increase by $100.
C) It will increase by $200.
D) It will increase by $143.
E) It will increase by $90.