If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP Group of answer choices Decreases by $25 billion Increases by $40 billion Decreases by $20 billion Increases by $20 billion
If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP Group of answer choices Decreases by $25 billion Increases by $40 billion Decreases by $20 billion Increases by $20 billion
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.12P
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Question
If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP
Group of answer choices
Decreases by $25 billion
Increases by $40 billion
Decreases by $20 billion
Increases by $20 billion
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