View the step-by-step solution to:

Question

This question was created from Econ_1A_Exam_3_Spring_2007 https://www.coursehero.com/file/8698135/Econ-1A-Exam-3-Spring-2007/

8698135-358047.jpeg
8698135-358047.jpeg

3. Suppose the MPC in an economy is 0.9, the APC is 0.8 and disposable income is $9
billion. If disposable income increases to $14 billion, what is the new level of
consumption?
A) $11.7 billion. B) $13.5 billion. C) $9 billion. D) $12.6 billion.

Top Answer

Here is the answer... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question