Multiple Choice
If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.1, and the government increases expenditures by $10 billion, ignoring foreign-income repercussions, how much will GDP rise?
A) $20 billion.
B) $10 billion.
C) $25 billion.
D) $15 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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