If the marginal propensity to consume is 0.67 and initial spending increases by $25, real GDP will
A) increase by $75
B) decrease by $75
C) increase by $25
D) decrease by $25
Answer: C
If the marginal propensity to consume is 0.67 and initial spending increases by $25, real GDP will
A) increase by $75
B) decrease by $75
C) increase by $25
D) decrease by $25
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