If the Marginal Propensity to Consume (MPC) Is 0

question 78

Multiple Choice

If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?

• A) − $240 million.
• B) − $200 million.
• C) − $180 million.
• D) − $50 million.

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