Suppose the MPC is equal to 0.5. In the simple income and expendituremodel, a $100 increase in investment spending will lead to a

Select one:

a.$100 increase in spending in the first round, and a total increase in spending of $500

b.$50 increase in spending in the first round, and a total increase in spending of $100

c.$100 increase in spending in the first round, and a total increase in spending of $200

d.Total increase in spending of $100 since an increase in investment spending does not create a multiplier effect.