Solved

If the Marginal Propensity to Consume Is 0

Question 196

Multiple Choice

If the marginal propensity to consume is 0.6 and investment spending declines by $50 billion,by how much will equilibrium output change?

A) -$125 billion
B) -$83.3 billion
C) -$50 billion
D) $83.3 billion
E) $125 billion

Related Questions

Q191: In the short-run macro model,if aggregate expenditure

Q192: If the marginal propensity to consume is

Q193: If the marginal propensity to consume is

Q194: If aggregate expenditure at a particular level

Q195: Everything else being equal,a higher interest rate<br>A)

Q197: Which of the following is the definition

Q198: Which of the following is not true

Q199: In the short-run macro model,what type of

Q200: The difference between the number of workers

Q201: If the MPC is 0.8 and disposable