An Increase in Government Spending by $100 Would, If the MPC

question 197

Multiple Choice

An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:

• A) $1,000.
• B) $9,000.
• C) $900.
• D) $190.
• E) inadequate information is given.

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