Multiple Choice
Other things being constant, if the marginal propensity to save (MPS) is 0.1, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP)
A) decreases by $10 million.
B) increases by $90 million.
C) decreases by $1 billion.
D) increases by $1 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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