If the Marginal Propensity to Consume Is 0

question 14

Multiple Choice

If the marginal propensity to consume is 0.8 and marginal propensity to import is 0.3, then an increase in exports by 100 will cause equilibrium GDP to increase by

• A) 200.
• B) 500.
• C) 90.
• D) 330.

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A legal obligation of one party to act solely in the interest of another party. For example, corporate directors have a fiduciary duty to act in the best interests of their shareholders.

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