Question
The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the result of an increase in the aggregate expenditures schedule of:
a. $10 billion
b. $15 billion
c. $16 billion
d. $40 billion
Take a shot. Hint, calculate a multiplier.
a. $10 billion
b. $15 billion
c. $16 billion
d. $40 billion
Take a shot. Hint, calculate a multiplier.
Answers
a.$10 billion
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