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    Principles of Economics
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    Exam 36: Appendix: Aggregate Expenditure and the Multiplier
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    If the Marginal Propensity to Consume Is 0
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If the Marginal Propensity to Consume Is 0

Question 66

Question 66

Multiple Choice

If the marginal propensity to consume is 0.9, how much will GDP change when consumption increases by $5 billion?


A) $4.5 billion
B) $5 billion
C) $6.5 billion
D) $50 billion

Correct Answer:

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