If the Marginal Propensity to Consume in an Economy Is

question 60

Multiple Choice

If the marginal propensity to consume in an economy is .8,net exports are zero,and government spending is $33 billion at each level of real GDP,the slope of the economy's aggregate expenditures schedule will be:

• A) .8.
• B) .2.
• C) 5.
• D) .125.

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Definitions:

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