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    Macroeconomics Study Set 57
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    Exam 11: Aggregateexpenditures
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    If Spending Decreases by $400, and GDP Decreases by $1,000
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If Spending Decreases by $400, and GDP Decreases by $1,000

Question 120

Question 120

Multiple Choice

If spending decreases by $400, and GDP decreases by $1,000 as a result, what must the MPC be?


A) 0.6
B) 0.75
C) 4
D) 2.5

Correct Answer:

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