In the simple Keynesian model, if there is an autonomous investment fa

In the simple Keynesian model, if there is an autonomous investment falls by $20 billion and the MPC (b) is 0.60, the equilibrium income level will increase by

a. $13.3 billion.
b. $20 billion.
c. $50 billion.
d. $100 billion.

 

ANSWER

C

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