Answered

At Westonci.ca, we connect you with experts who provide detailed answers to your most pressing questions. Start exploring now! Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

When we increased planned investment spending by $500 in an economy where mpc equaled 0.80, the total increase in Y was $2500. When taxes are reduced by $500, we are missing the first round of spending compared to the planned investment spending increase. What is the total change in output (Y) when there is a $500 tax break and mpc is 0.8?
A. 500
B. 2000
C. 2500
D. 3000

Sagot :

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.