if-government-spending-increases-by-100-in-an-economy-with-an-mpc-of-08-what-is-

Question

If government spending increases by $100 in an economy with an MPC of 0.8, what is the expected change in GDP?

Accepted Answer

$500

Answer

$800

Answer

$100

Answer

$400

If government spending increases by \$100 in an economy with an MPC of 0.8, what is the expected change in GDP?