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    Economics Principles and Policy Study Set 2
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    Exam 25: Demand-Side Equilibrium: Unemployment or Inflation
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    Assume That the MPC Is 0
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Assume That the MPC Is 0

Question 134

Question 134

Multiple Choice

Assume that the MPC is 0.80 and investment rises by $50 million.How much additional saving will this generate in the second round of spending?


A) $10 million
B) $40 million
C) $50 million
D) $62.5 million
E) $250 million

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