Multiple Choice
China injects $100 into the U.S. economy by purchasing new software, and the marginal propensity to consume for the U.S. economy is 0.5. Assuming that there are no leakages except savings, the total increase in spending in U.S. economy will be:
A) $50.
B) $100.
C) $150.
D) $200.
Correct Answer:

Verified
Correct Answer:
Verified
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