Assume That the MPC Is 0

question 134

Multiple Choice

Assume that the MPC is 0.80 and investment rises by $50 million.How much additional saving will this generate in the second round of spending?

• A)$10 million
• B)$40 million
• C)$50 million
• D)$62.5 million
• E)$250 million

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Definitions:

Barrel Chest

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