Multiple Choice
Suppose real GDP increases from $13 trillion to $14 trillion. Consequently, consumption expenditure increases from $13 trillion to $13.75 trillion. This result implies the MPS equals
A) 0.75.
B) 0.25.
C) 0.
D) some amount that cannot be determined without more information.
Correct Answer:
Verified
Correct Answer:
Verified
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