Solved

Suppose an Increase in Planned Investment of $70 Billion Causes

Question 126

Multiple Choice

Suppose an increase in planned investment of $70 billion causes equilibrium output demanded to rise by $280 billion.What is the value of the marginal propensity to consume?  


A)  1/4 
B)  1/3 
C)  3/4 
D)  4/3

Correct Answer:

verifed

Verified

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

Related Questions

Q121: Suppose the level of autonomous spending increases

Q122: What is the effect of a decrease

Q123: Other things constant, how does an increase

Q124: Which of the following is NOT included

Q125: On the aggregate expenditure graph, suppose autonomous

Q127: How will an increase in the price

Q128: Suppose planned autonomous investment increases by $200

Q129: <br><br> <span class="ql-formula" data-value="\begin{array}{l}\text { Schedule

Q130: <br><br> <span class="ql-formula" data-value="\begin{array}{l}\text { Schedule

Q131: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the