Q. Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billiondollars. How much will GDP increased? (Solved)
1. 100 billion dollars
2. 200 billion dollars
3. 300 billion dollars
4. 500 billion dollars
- b. 200 billion dollars
1. 100 billion dollars
2. 200 billion dollars
3. 300 billion dollars
4. 500 billion dollars