Multiple Choice
If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $400 billion, then
A) an increase in autonomous real consumption spending of $100 billion will generate this change.
B) a decrease in autonomous real saving of $400 billion will generate this change.
C) an increase in planned real investment spending of $100 billion will generate this change.
D) an increase in real autonomous spending of $80 billion will generate this change.
Correct Answer:

Verified
Correct Answer:
Verified
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Q402: The average propensity to consume is<br>A) real
Q403: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
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Q405: The marginal propensity to consume (MPC) is<br>A)
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Q408: The multiplier tells us the relationship between<br>A)
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