Assuming MPC = 0.5, a $500 increase in intended investment will shift the aggregate expenditure curve up by
a. $500 and will increase the equilibrium level of national income by $500
b. $500 and will increase the equilibrium level of national income by less than $500
c. $500 and will increase the equilibrium level of national income by more than $500
d. more than $500 and will increase the equilibrium level of national income by more than $500
e. less than $500 and will increase the equilibrium level of national income by less than $500
C
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