Solved

China Injects $100 into the U

Question 4

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions