24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total effect on the economy is an increase of A) $800 B) $1,000 C) $5,000 D) $8,000 in income or output.
24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total effect on the economy is an increase of A) $800 B) $1,000 C) $5,000 D) $8,000 in income or output.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.10P
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![24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8,
the total effect on the economy is an increase of
A) S800
B) $1,000
C) $5,000
D) $8,000
in income or output.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6b81aa3-b696-4ca2-8788-928551153b41%2F2a9054f6-c072-4191-921e-98e5d767f7f9%2F39nt9g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8,
the total effect on the economy is an increase of
A) S800
B) $1,000
C) $5,000
D) $8,000
in income or output.
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