If the MPC of an Economy Is

question 148

Multiple Choice

If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by

• A)$50 million.
• B)more than $50 million but less than $500 million.
• C)$500 million.
• D)more than $500 million.