in an economy an increase in investment leads to an increase in national income 3 times more than increase in investment. calculate mpc

A decrease in the MPC may cause ______________.a.A fall in the equilibrium incomeb.An increase in the equilibrium income.c.It does not affect the equilibrium incomed.The government spending multiplier riseClear my choiceQuestion 8Not yet answeredMarked out of 1.00Flag questionQuestion textThe variable that connects the market of money and the market of goods via investment spending is ________.a.The MPCb.The interest ratec.The MPSd.The CPI

Suppose that in the following figure, investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP? a. $10 million b. $100 million c. $90 million d. $9 million

The following table shows the relationship between income and consumption in an economy.Income (Y)(in billions of dollars)Consumption (C) (in billions of dollars)051011201730234029503560417047805390 59100 65Assume that investment (I) is $5 billion, government purchases (G) are $4 billion, and net exports (X) are $2 billion.What is the numerical value of the MPC (stated as a decimal)?MPC =

With an MPC of 0.6, the expenditures multiplier will be equal to

A decrease in the MPC may cause ______________.a.A fall in the equilibrium incomeb.An increase in the equilibrium income.c.It does not affect the equilibrium incomed.The government spending multiplier rise