Consider a model in which output is demand-determined.If the marginal propensity to spend out of national income is 0.4,then a $0.6 billion decrease in government purchases will cause equilibrium national income to ________ by approximately ________.
A)decrease; $1.50 billion
B)decrease; $1.00 billion
C)decrease; $0.24 billion
D)increase; $1.00 billion
E)increase; $1.50 billion

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The Answer of Consider a model in which output is demand-determined.If the marginal propensity to spend out of national income is 0.4,then a $0.6 billion decrease in government purchases will cause equilibrium national income to ________ by approximately ________.
A)decrease; $1.50 billion
B)decrease; $1.00 billion
C)decrease; $0.24 billion
D)increase; $1.00 billion
E)increase; $1.50 billion

Consider a Model in Which Output Is Demand-Determined