If the marginal propensity to consume is 0.6 and real GDP falls by $25, this is caused by a decrease in initial spending of
A) $10.00
B) $15.00
C) $16.67
D) $20.00
Answer: A
If the marginal propensity to consume is 0.6 and real GDP falls by $25, this is caused by a decrease in initial spending of
A) $10.00
B) $15.00
C) $16.67
D) $20.00
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.