Multiple Choice
Suppose the MPC is 0.8 in Canada and the MPCh is 0.55. If income increases by $100 million in Canada, then the increase in consumption of foreign goods will be:
A) $35 million.
B) $25 million.
C) $80 million.
D) $100 million.
Correct Answer:
Verified
Correct Answer:
Verified
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