Multiple Choice
Within the Keynesian model, if the marginal propensity to consume is 0.8, which of the following is true?
A) When consumption increases by $5, income increases by $1.
B) When consumption increases by $1, saving increases by $5.
C) When investment increases by $1, income increases by $5.
D) When investment increases by $1, saving increases by $5.
Correct Answer:
Verified
Correct Answer:
Verified
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