15. If, in the economy described, government spending increases by $200 million, what will be the associated change in equilibri

Question

irakobra [83]

3 years ago

6

15. If, in the economy described, government spending increases by $200 million, what will be the associated change in equilibri

um income (in millions)?

Business

1 answer:

iris [78.8K] · Answer 1 · 2022-04-13T14:29:42+03:00

iris [78.8K]3 years ago

6 0

Answer:

$200 (million)

Explanation:

If the government spending increases by $200 million, then associated change in equilibrium income will be $ 200 million, assuming that Marginal Propensity to Consume (MPC) is 1