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Refer to Figure 11.4 to answer the question. If MPC is 0.9, what is the impact of a $100 increase in government expenditures on GDP?

Refer to Figure 11.4 to answer the question. If MPC is 0.9, what is the impact of a $100 increase in government expenditures on GDP? Figure 11.4 Graph - Upward sloping line TE1 intersected by the 45-degree line at Y1 marked along the horizontal axis; upward sloping line TE2 intersected by the 45-degree line at Y2 marked along the horizontal axis; TE2 is above TE1; the distance between TE1 and TE2 is marked along the vertical axis as G=100 Refer to Figure 11.4 to answer the question. If MPC is 0.9, what is the impact of a $100 increase in government expenditures on GDP? $100 $400 $500 $1,000

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