Households change their spending by $10 billion due to a decrease in net wealth. The country's marginal propensity to consume is 0.8. What impact will this have on real GDP? O Consumption spending will increase by $10 billion Investment spending will decrease by $50 bilion O Consumption spending will increase by $50 billion O Consumption spending will decrease by $50 billion Consumption spending will decrease by $10 billion O oooO
Households change their spending by $10 billion due to a decrease in net wealth. The country's marginal propensity to consume is 0.8. What impact will this have on real GDP? O Consumption spending will increase by $10 billion Investment spending will decrease by $50 bilion O Consumption spending will increase by $50 billion O Consumption spending will decrease by $50 billion Consumption spending will decrease by $10 billion O oooO
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 1.2P
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![Question 21
Households change their spending by $10 billion due to a decrease in net wealth. The country's
marginal propensity to consume is 0.8. What impact will this have on real GDP?
Consumption spending will increase by $10 billion
Investment spending will decrease by $50 billion
Consumption spending will increase by $50 billion
Consumption spending will decrease by $50 billion
O Consumption spending will decrease by $10 billion
O ooo O](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8621dda-4348-4b0b-a0ab-28c51a7439a4%2Ff5edcd2a-3ab2-4e68-885f-2896d5c714b1%2F159qw9a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 21
Households change their spending by $10 billion due to a decrease in net wealth. The country's
marginal propensity to consume is 0.8. What impact will this have on real GDP?
Consumption spending will increase by $10 billion
Investment spending will decrease by $50 billion
Consumption spending will increase by $50 billion
Consumption spending will decrease by $50 billion
O Consumption spending will decrease by $10 billion
O ooo O
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