Solved

If the Marginal Propensity to Consume Is 0

Question 181

Multiple Choice

If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion,by how much will equilibrium output increase?

A) $350 billion
B) $150 billion
C) $200 billion
D) $266.7 billion
E) $800 billion

Related Questions

Q176: The multiplier effect<br>A) tells us nothing about

Q177: Which of the following would lead to

Q178: Which of the following components of government

Q179: If the marginal propensity to consumer is

Q180: Use the table below to determine the

Q182: Suppose the MPC is 0.9.If autonomous consumption

Q183: Disposable income is best defined as<br>A) income

Q184: Which of the following statements is most

Q185: In calculating total spending,after adding together Consumption,Investment,and

Q186: The marginal propensity to consume (MPC)is<br>A) the