Multiple Choice
Suppose aggregate output is demand-determined.If the business community decreases its planned investment expenditures by $4 billion,causing equilibrium national income to fall by $12 billion,the marginal propensity to spend must be
A) 1/3.
B) 1/2.
C) 2/3.
D) 4/5.
E) 3.
Correct Answer:
Verified
Correct Answer:
Verified
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