If the MPC = 0.8, and planned autonomous investment increases by ...

[oliviahorn72]

If the MPC = 0.8, and planned autonomous investment increases by 80 billion, then equilibrium real GDP will increase by
 
  A) 320 billion. B) 80 billion. C) 400 billion. D) 64 billion.

Question 2

Figure 4.3 illustrates the demand for tacos. Assume that tacos and burritos are substitutes. A decrease in the price of burritos would bring about a movement from
 
  A) point a to point c. B) point c to point b. C) D2 to D0. D) D1 to D2.

[guyanai]

Answer to Question 1

C

Answer to Question 2

C

[oliviahorn72]

Gracias!

[Jossy]

Thanks for the timely response, appreciate it