Solved

If the Marginal Propensity to Consume (MPC) Is 0

Question 261

Multiple Choice

If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $1 trillion, then saving will

A) increase by $0.5 trillion.
B) increase by $1 trillion.
C) increase by $1.5 trillion.
D) remain unchanged.

Related Questions

Q256: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q257: Dissaving occurs when<br>A) the amount of consumption

Q258: At a level of real disposable income

Q259: Which of the following is FALSE?<br>A) 1

Q260: In the Keynesian model, whenever planned saving

Q262: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -According to the

Q263: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -According to the

Q264: Using real GDP on the horizontal axis

Q265: Nonconsumable goods that firms use to make

Q266: In the Keynesian model, planned investment is<br>A)