If the marginal propensity to save is 0.2 and the government decreases its purchases by $20 billion, then real GDP will

Question

If the marginal propensity to save is 0.2 and the government decreases its purchases by $20 billion, then real GDP will
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The question seems to be incomplete. However, I can provide a general answer based on the information given.

The marginal propensity to save (MPS) is the increase in household savings due to an increase in national income. If the MPS is 0.2, this means that for every additional dollar of income, h Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

If the marginal propensity to save is 0.2 and the government decreases its purchases by $20 billion, then real GDP will

If the marginal propensity to consume is 0.75, then the government-purchases multiplier is:0.25.0.75.4.4.75.

If national income increases from $410 to $430 billion and the marginal propensity to save is 0.25, then savings will increase from $5 to billion.

If the marginal propensity to consume is 0.7, the government-purchases multiplier is:0.3.0.7.1.4.3.3.

Marginal Propensity to consume + Marginal Propensity to Save is always equal to Group of answer choicesidentical01varies

1/3