In the Simple Keynesian Model,if There Is an Autonomous Investment

question 54

Multiple Choice

In the simple Keynesian model,if there is an autonomous investment falls by $20 billion and the MPC (b) is 0.60,the equilibrium income level will increase by

• A)$13.3 billion.
• B)$20 billion.
• C)$50 billion.
• D)$100 billion.