Question
In a private closed economy where MPC = 0.75, if consumers reduce their spending by $30 billion and firms cut investments by $5 billion, then
In a private closed economy where MPC = 0.75, if consumers reduce their spending by $30 billion and firms cut investments by $5 billion, then equilibrium GDP will decrease by
Multiple Choice
- $140 billion.
- $25 billion.
- $120 billion.
- $5 billion.
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
