Solved

Figure 12-3 -Refer to Figure 12-3.Suppose That Investment Spending Increases by $10

Question 124

Multiple Choice

Figure 12-3 Figure 12-3 -Refer to Figure 12-3.Suppose that investment spending increases by $10 million,shifting up the aggregate expenditure line and GDP increases from GDP<sub>1</sub> to GDP<sub>2</sub>.If the MPC is 0.9,then what is the change in GDP? A) $9 million B) $10 million C) $90 million D) $100 million
-Refer to Figure 12-3.Suppose that investment spending increases by $10 million,shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2.If the MPC is 0.9,then what is the change in GDP?


A) $9 million
B) $10 million
C) $90 million
D) $100 million

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q119: C = 2,800 + 0.9Y<br>I = 750<br>G

Q120: Given the equations for C,I,G,and NX below,what

Q121: An increase in the price level results

Q122: Firms in a small economy planned that

Q123: What impact does an increase in the

Q125: The Apple iPhone is sold in a

Q126: Use a 45 degree-line diagram to illustrate

Q127: When aggregate expenditure = GDP<br>A)macroeconomic equilibrium occurs.<br>B)the

Q128: The difference between GDP and disposable income

Q129: Discuss the leading causes of the Great