The formula for the effect of any change in autonomous spending, ?A, where b equals the MPC is
A) ?Y = ?A [1/(1 - b)].
B) ?Y = ?A [b/(1 - b)].
C) ?Y = ?A [1/(1 + b)].
D) ?Y = ?A [b/(1 + b)].
A
Economics
A) ?Y = ?A [1/(1 - b)].
B) ?Y = ?A [b/(1 - b)].
C) ?Y = ?A [1/(1 + b)].
D) ?Y = ?A [b/(1 + b)].
A