Multiple Choice
If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then
A) real Gross Domestic Product (GDP) will rise by $400 billion.
B) real Gross Domestic Product (GDP) will rise by $200 billion.
C) real Gross Domestic Product (GDP) will rise by $100 billion.
D) real Gross Domestic Product (GDP) will decrease by $100 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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