Adding the given level of government purchases to consumption and gross investment increases aggregate expenditures by the level of government purchases.
What happens to the consumption function when MPC increases?
A change in the level of marginal propensity to consume will alter the slope of the consumption function.
Hence, Adding the given level of government purchases to consumption and gross investment increases aggregate expenditures by the level of government purchases.
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adding the given level of government purchases to consumption and gross investment increases ___ expenditures by the level of government purchases
