in-an-open-economy-with-government-spending-if-the-mpc-is-07-and-government-spen

Question

In an open economy with government spending, if the MPC is 0.7 and government spending increases by $100, what is the expected change in GDP?

Accepted Answer

$333.33

Answer

$350

Answer

$300

Answer

$400

In an open economy with government spending, if the MPC is 0.7 and government spending increases by \$100, what is the expected change in GDP?