:
Transcribed Image Text:If the marginal propensity to consume is 0.75
and investment spending increases by $200
billion, by how much will equilibrium output
increase?
a. $350 billion
b. $150 billion
c. $200 billion
d. $266.7 billion
e. $800 billion
and investment spending increases by $200
billion, by how much will equilibrium output
increase?
a. $350 billion
b. $150 billion
c. $200 billion
d. $266.7 billion
e. $800 billion
