An economy has no imports or income taxes. The MPC is 0.75 and real GDP is $120 billion. Businesses increase investment by $4 billion. The new level of real GDP is
A) $140 billion.
B) $132 billion.
C) $136 billion.
D) $124 billion.
E) $128 billion.
Correct Answer:
Verified
Q60: A country reports that unplanned inventories increased
Q61: Increases in autonomous expenditure induce _ in
Q62: Q63: When the multiplier is _, an autonomous Q64: If autonomous spending decreases, then Q66: If an increase of $10 billion in Q67: If the MPC is 0.6 and there Q68: In an economy with no income taxes Q69: In an economy in with no income Q70: 
A) the expenditure
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