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:

Verified
Correct Answer:
Verified
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