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# If the MPS is 0.25 and autonomous consumer spending increases by \$75 billion, we would expect equilibrium income (Y) to: (show your work to the right) A. increase by \$75 billion. B. increase by \$300 billion. C. decrease by \$75 billion. D. increase by roughly \$100 billion. E. None of the above If the MPC is 0.80 and investment spending increases by \$50 billion, we would expect equilibrium income (Y) to: A. increase by \$50 billion. B. increase by \$500 billion. C. decrease by \$50 billion. D. increase by \$250 billion. E. None of the above Suppose the government increases itâs spending by \$100 billion as a stimulus package. If the MPC is 0.75, then equilibrium income will: A. increase by \$ 750 billion. B. increase by \$133.33 billion. C. decrease by \$600 billion. D. increase by \$400 billion. If the MPC is 0.50 and government spending decreases by \$150 billion, we would expect equilibrium income to: A. decrease by \$150 billion. B. decrease by \$300 billion. C. increase by \$75 billion. D. decrease by \$150 billion. E. None of the above.

Raushan RajLv8
28 Sep 2019

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