The following information for an economy is given. MD: i=0.12-0.00015QM Investment demand: i=0.12-0.0003IP C= 250+0.75(Y-T) Multiplier =1/(1-MPC) T=0, G=200, MS=200 r=0.10 (required reserve ratio) The MPC (marginal propensity to consume) is ____ blank _, which means the__ blank _ A. 0.25 B. 0.75 C. amount (fraction)save out of each additional dollar of income. D. amount (fraction) spent out of each additional dollar of income.

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