1.

If the MPC is .70 and investment increases by $6 billion, the equilibrium GDP will:

Group of answer choices

increase by $10 billion.

increase by $20 billion.

increase by $42 billion.

increase by $18 billion.

2.

Refer to the figure. The consumption schedule indicates that:

Group of answer choices

consumers will maximize their satisfaction where the consumption schedule and 45 line intersect.

up to a point consumption exceeds income but then falls below income.

the MPC falls as income increases.

households consume as much as they earn.