If the economy is currently at equilibrium at $1 trillion and the MPC is 0.6,a $100 decrease in government purchases of goods and services will result in a new equilibrium at
A)$600 billion
B)$400 billion
C)$750 billion
D)$1.4 trillion
E)$1.6 trillion

Question

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The Answer of If the economy is currently at equilibrium at $1 trillion and the MPC is 0.6,a $100 decrease in government purchases of goods and services will result in a new equilibrium at
A)$600 billion
B)$400 billion
C)$750 billion
D)$1.4 trillion
E)$1.6 trillion

If the Economy Is Currently at Equilibrium at $1 Trillion