If the mpc is 5/6 then the multiplier is
a. 6, so a $200 increase in government spending incr...
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Social Studies, 13.12.2019 17:31 kellyzeissss9134
If the mpc is 5/6 then the multiplier is
a. 6, so a $200 increase in government spending increases aggregate demand by $1200.
b. 5, so a $200 increase in government spending increases aggregate supply by $1000.
c. 6/5, so a $200 increase in government spending increases aggregate demand by $240.
d. 6/5, so a $200 increase in government spending increases aggregate supply by $1200. 5 points
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