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If the Marginal Propensity to Consume Is 0

Question 41

Multiple Choice

If the marginal propensity to consume is 0.8 and if government spending (G) rises by 50 while investment (I) falls by 20,by how much will equilibrium income rise?


A) 12
B) 10
C) 30
D) 120
E) 150

Correct Answer:

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