Solved

Suppose That the Marginal Propensity to Consume (MPC) Is

Question 438

Multiple Choice

Suppose that the marginal propensity to consume (MPC) is .8 and there is an increase in investment spending of $100,000. As a result, equilibrium real Gross Domestic Product (GDP) would increase by


A) $20,000.
B) $100,000.
C) $500,000.
D) $800,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q433: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q434: According to the above figure, at an

Q435: The break-even point refers to<br>A) a zero

Q436: Which of the following is correct?<br>A) 1

Q437: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q439: A decrease in interest rates will<br>A) shift

Q440: Fixed investment is<br>A) when a firm adds

Q441: For a closed economy with no government,

Q442: A decrease in the interest rate results

Q443: The equation is the <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt="The