Assume the marginal propensity to consume is 0.5 (c1 =0.5). Given this data, which of the following events will result in the greatest increase in output? I decreases by 300. O I decreases by 250. G increases by 300. Tincreases by 250. G decreases by 300.

Assume the marginal propensity to consume is 0.5 (c1 =0.5). Given this data, which of the following events will result in the greatest increase in output? I decreases by 300. O I decreases by 250. G increases by 300. Tincreases by 250. G decreases by 300.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Assume the marginal propensity to consume is 0.5 (c1 =0.5). Given this data, which
of the following events will result in the greatest increase in output?
I decreases by 300.
O
I decreases by 250.
G increases by 300.
Tincreases by 250.
G decreases by 300.

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