Multiple Choice
If the marginal propensity to save is equal to 0.5 in the simple Keynesian model,then a 10-unit increase in government spending will cause output to rise by
A) 5 units.
B) 10 units.
C) 20 units.
D) 25 units.
E) 40 units.
Correct Answer:
Verified
Correct Answer:
Verified
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