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according to the keynesian cross model, if the marginal propensity to consume is 2/3, an increase in government purchases of $120 billion increases equilibrium income by a. $160 b. $180 c. $240 d. $360

Respuesta :

The Keynesian Cross Model states that when the marginal propensity to consume is $360 Option B is Correct

The equilibrium level of real GDP is determined by the point at which the total or aggregate expenditures in the economy equal the amount of output generated, according to the The Keynesian cross diagram is a common name for the expenditure-output model. This is where the term "Keynesian cross" originates since it basically compares anticipated expenditures to the equilibrium line, or what I refer to as the equilibrium line, because at each of these places, income and spending are equal. Income and spending are equal right now.

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