Macroeconomics

If the marginal propensity to consume (MPC) is 2/3 an increase in government spending (G) from

Question

If the marginal propensity to consume (MPC) is 2/3, an increase in government spending (G) from

$20

million to $35 million will increase equilibrium income by:

A) $15 million B) $10 million

C) $25 million D) $45 million

Macroeconomics

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