In the Simple Keynesian Model,if the Equilibrium Level of Income

question 5

Multiple Choice

In the simple Keynesian model,if the equilibrium level of income is $300 billion,the MPC is 0.75,and government expenditures increase by 20 billion.What is the new equilibrium level of income?

• A)$320 billion
• B)$380 billion
• C)$220 billion
• D)$520 billion

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