Multiple Choice
Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The marginal propensity to spend is equal to
A) -0.6.
B) 0.4.
C) 0.6.
D) 2.5.
E) -2.5.
Correct Answer:
Verified
Correct Answer:
Verified
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