Assuming the MPC = 0.80 and considering only the multiplier effect, if government spending increases by $40 billion, then national income can potentially increase by
A.
$2 billion
B.
$8 billion
C.
$80 billion
D.
$200 billion
Exam No：AP Macroeconomics Problem Set 1 Year：2024 Question No：APMacroeconomics2024AP0137
Answer:
D
Knowledge points:
3.2 Multipliers
Solution:
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