In the Keynesian-cross model with an MPC 0, if government purchases increase by 250, then the equilibrium level of income:
A)increases by 250.
B)increases by more than 250.
C)decreases by 250.
D)increases but by less than 250.

Name: In the Keynesian-cross model with an MPC > 0, if government purchases increase by 250, then the equilibrium level of income: A)increases by 250. B)increases by more than 250. C)decreases by 250. D)increases but by less than 250.
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Question

In the Keynesian-cross model with an MPC > 0, if government purchases increase by 250, then the equilibrium level of income:
A)increases by 250.
B)increases by more than 250.
C)decreases by 250.
D)increases but by less than 250.

Quizplus · Accepted Answer

The Answer is B

In the Keynesian-Cross Model with an MPC > 0, If