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 $8 billion,the marginal propensity to spend must be
A) 2/5.
B) 1/2.
C) 2/3.
D) 4/5.
E) 2.
Correct Answer:
Verified
Correct Answer:
Verified
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Q102: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 21-1 Refer
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Q108: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 21-1 Refer
Q109: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 21-3 Refer