Solved

If the Marginal Propensity to Consume (MPC)is 0

Question 372

Multiple Choice

If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then


A) an increase in autonomous real consumption spending of $500 billion will generate this change.
B) a decrease in autonomous real saving of $500 billion will generate this change.
C) an increase in planned real investment spending of $200 billion will generate this change.
D) an increase in real autonomous spending of $100 billion will generate this change.

Correct Answer:

verifed

Verified

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

Related Questions