If the marginal propensity to consume (MPC) is 0.75, a $50 billion decrease in government spending would cause equilibrium output to
a. increase by $50 billion.
b. decrease by $50 billion.
c. increase by $200 billion.
d. decrease by $200 billion.
If the marginal propensity to consume (MPC) is 0.75, a $50 billion decrease in government spending would cause equilibrium output to
a. increase by $50 billion.
b. decrease by $50 billion.
c. increase by $200 billion.
d. decrease by $200 billion.
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