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If the Marginal Propensity to Consume (MPC) Is 0

Question 406

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.

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