Assume there is no government or foreign sector. If the MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by
A) $20 billion.
B) $50 billion.
C) $100 billion.
D) $200 billion.

Question

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The Answer of Assume there is no government or foreign sector. If the MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by
A) $20 billion.
B) $50 billion.
C) $100 billion.
D) $200 billion.

Assume There Is No Government or Foreign Sector