Suppose government finds it can increase the equilibrium real GDP $45 billion by increasing government purchases by $18 billion.On the basis of this information,we can say that the:
A) MPS in this economy is .4.
B) MPC in this economy is .4.
C) multiplier does not apply in this economy.
D) multiplier is 3.

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The Answer of Suppose government finds it can increase the equilibrium real GDP $45 billion by increasing government purchases by $18 billion.On the basis of this information,we can say that the:
A) MPS in this economy is .4.
B) MPC in this economy is .4.
C) multiplier does not apply in this economy.
D) multiplier is 3.

Suppose Government Finds It Can Increase the Equilibrium Real GDP