Multiple Choice
Assume an economy with an upward-sloping aggregate supply curve and an MPC of 0.80.An increase in investment spending of $50 billion will most likely increase total income by
A) $200 billion.
B) $40 billion.
C) more than $200 billion.
D) more than $50 billion but less than $250 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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