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(Solved): If government increases its purchases by \( \$ 20 \) billion and the \( M P C=0.9 \), the resultin ...



If government increases its purchases by \( \$ 20 \) billion and the \( M P C=0.9 \), the resulting increase in the consumpti

If government increases its purchases by \( \$ 20 \) billion and the \( M P C=0.9 \), the resulting increase in the consumption component of \( A D \) is: \( \$ 200 \) billion. \( \$ 18 \) billion. \( \$ 2 \) billion. \( \$ 2.2 \) billion.


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The resulting increase in the GDP from the spending increase is the size of the multiplier times the size of
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