According to the Keynesian-Cross Analysis, When There Is a Shift $\Delta$

question 124

Multiple Choice

According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount $\Delta$ G and the planned expenditure schedule by an equal amount, then equilibrium income rises by:

• A) one unit.
• B) \(\Delta\)G.
• C) \(\Delta\)G divided by the quantity one minus the marginal propensity to consume.
• D) \(\Delta\)G multiplied by the quantity one plus the marginal propensity to consume.

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