Multiple Choice
Suppose aggregate output is demand- determined. Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million. The marginal propensity to spend is equal to
A) 0.4.
B) - 0.6.
C) - 2.5.
D) 2.5.
E) 0.6.
Correct Answer:
Verified
Correct Answer:
Verified
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