Multiple Choice
Suppose the MPC is 0.9.If autonomous consumption spending increases by $20 billion,equilibrium output will
A) increase by $22.2 billion
B) increase by $200 billion
C) not change because the MPC only changes consumption when income changes
D) not change because the expenditures multiplier only applies to changes in investment spending and government purchases
E) increase by $18 billion.
Correct Answer:

Verified
Correct Answer:
Verified
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