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    Macroeconomics Study Set 12
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    Exam 3: Income and Interest Rates: the Keynesian Cross Model and the Is Curve
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    Assuming a Simple Keynesian Multiplier,and Given an Increase in Planned
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Assuming a Simple Keynesian Multiplier,and Given an Increase in Planned

Question 16

Question 16

Multiple Choice

Assuming a simple Keynesian multiplier,and given an increase in planned investment of $100 billion,the effect on total output will be greater than $100 billion only if the


A) MPS is greater than zero.
B) MPC is zero.
C) MPS is less than zero.
D) MPC is greater than one.

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