Multiple Choice
During the millennium scare of 2000, Rufus reduced his monthly spending by $1,000 and buried his money in the backyard. If the marginal propensity to consume is 0.75, by how much did national income fall?
A) $1,000
B) $0
C) $4,000
D) It increased $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
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