Multiple Choice
Suppose aggregate output is demand-determined.If the business community decreases its planned investment expenditures by $4 billion,causing equilibrium national income to fall by $20 billion,the marginal propensity to spend must be
A) 2/5.
B) 1/3.
C) 1/2.
D) 4/5.
E) 5.
Correct Answer:
Verified
Correct Answer:
Verified
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