ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate penditures must have increased by Multiple Choice $400 billion $30 billion
ppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate penditures must have increased by Multiple Choice $400 billion $30 billion
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 8DQ
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Transcribed Image Text:Suppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.80. Aggregate
expenditures must have increased by
Multiple Choice
Panof
$400 billion.
$30 billion.
$80 billion
$320 billion.
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