Suppose the MPC Is 0

question 60

Multiple Choice

Suppose the MPC is 0.8 in Canada and the MPC is 0.55 at Home. If income increases by $100 million in Canada, then the increase in consumption of domestic goods will be:

• A) $25 million.
• B) $80 million.
• C) $55 million.
• D) $35 million.

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