Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11
-Refer to Figure 8.11. A $10 million decrease in autonomous consumption
A) changes equilibrium expenditure to $160 million.
B) changes equilibrium output to $120 million.
C) increases the MPC.
D) increases the MPS.

Question

Refer to the information provided in Figure 8.11 below to answer the questions that follow.  Figure 8.11
-Refer to Figure 8.11. A $10 million decrease in autonomous consumption
A) changes equilibrium expenditure to $160 million. 
B) changes equilibrium output to $120 million. 
C) increases the MPC. 
D) increases the MPS.

Quizplus · Accepted Answer

A $10 million decrease in autonomous consumption will decrease equilibrium expenditure by $10 million, from $170 million to $160 million.

Refer to the Information Provided in Figure 8