Multiple Choice
According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ΔG, then equilibrium income rises by:
A) one unit.
B) ΔG.
C) ΔG divided by one minus the marginal propensity to consume.
D) ΔG multiplied one plus the marginal propensity to consume.
Correct Answer:
Verified
Correct Answer:
Verified
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