Multiple Choice
In the simple Keynesian model,if the equilibrium level of income is $300 billion,the MPC is 0.75,and government expenditures increase by 20 billion.What is the new equilibrium level of income?
A) $320 billion
B) $380 billion
C) $220 billion
D) $520 billion
Correct Answer:
Verified
Correct Answer:
Verified
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