suppose the government spends 1000 building a school. by how much will income (Y) increase in this economy?a) 820b) 1818c) 1000d) 2000

Consider an economy described by the following equations, where the MPC is consistent with the study described above. Consumption function: C = 100 +0.45*DI Disposable Income: DI = Y -T Taxes - Transfers: T = 1200 Investment: 1 =900 Government spending: G = 1300