Multiple Choice
In the Keynesian AE model,if the autonomous components of consumption,investment,government spending,and net export spending initially total $200 billion,and the MPS is 0.2,by how much will equilibrium output change if governments increase their spending by $5 billion?
A) by $1 billion
B) by $5 billion
C) by $10 billion
D) by $25 billion
Correct Answer:

Verified
Correct Answer:
Verified
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