Solved

Suppose the Marginal Propensity to Consume (MPC)is 0

Question 370

Multiple Choice

Suppose the marginal propensity to consume (MPC) is 0.8 and there is a $2,000 increase in autonomous consumption. Given this information, real GDP will increase by


A) $1,600.
B) $2,000.
C) $2,500.
D) $10,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q26: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q93: Changes in real planned investment spending have<br>A)

Q101: According to Keynes<br>A) consumption is positively related

Q213: The consumption function shows the relationship between

Q217: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q280: The consumption function shows the relationship between<br>A)

Q367: The investment function is represented by<br>A)an inverse

Q371: Your real disposable income is your real

Q372: If the marginal propensity to consume (MPC)is

Q375: Consumption goods are<br>A)a form of investment.<br>B)goods purchased