Multiple Choice
If the government spends $1 billion to create a wetlands preserve, taxes increase $1 billion to pay for it, and the marginal propensity to consume is 0.75, GDP:
A) remains unchanged.
B) increases by $1 billion.
C) increases by $4 billion.
D) decreases by $1 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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