Multiple Choice
If the marginal propensity to consume is 0.8, full-employment output is $14 trillion, and current output is $13.5 trillion, then investment spending must _____ to reach full-employment output.
A) increase by $0.5 trillion
B) decrease by $0.5 trillion
C) increase by $0.1 trillion
D) increase by $0.4 trillion
Correct Answer:
Verified
Correct Answer:
Verified
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