Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by:
A)$3 billion.
B. $2/3 billion.
C. $6 billion.
D. $2 billion.
Answer:C
Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by:
A)$3 billion. B. $2/3 billion. C. $6 billion. D. $2 billion.