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HELP PLEASE If in response to an increase in investment of $5 billion, equilibrium output rises by a total of $20 billion, then the marginal propensity to consume is A) .8 B) .75 C) .7 D) .6 E) .85
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41 votes
41 votes
HELP PLEASE If in response to an increase in investment of $5 billion, equilibrium output rises by a total of $20 billion, then the marginal propensity to consume is

A) .8

B) .75

C) .7

D) .6

E) .85

User Tunaki
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2 Answers

6 votes
6 votes

Answer:

0.75 took the test

Step-by-step explanation:

User Synthresin
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2.6k points
25 votes
25 votes

Answer:

Pretty sure its B

Step-by-step explanation:

lets say you have 20 take away 75% of 20 and your left with 5. every 5 Billion is 25%

User Williham Totland
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2.6k points
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