Multiple Choice
If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $0.5 trillion, then saving will
A) increase by $0.25 trillion.
B) increase by $0.5 trillion.
C) increase by $1 trillion.
D) remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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