Multiple Choice
Assume the marginal propensity to consume is 0.8.If consumer spending increases by $20 billion, then real GDP will
A) increase by $100 billion.
B) decrease by $100 billion.
C) increase by $16 billion.
D) not change.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q18: If disposable income decreases from $1,800 to
Q122: Investment spending in the United States tends
Q124: An increase in household wealth that creates
Q128: A firm invests in a new machine
Q129: A business firm will purchase additional capital
Q130: Which of the following may shift the
Q131: (Last Word) Art Buchwald's article "Squaring the
Q161: The immediate determinants of investment spending are
Q165: If the MPC is constant at various
Q177: The multiplier applies to<br>A) investment but not