If mpc = 0.75, a decrease from 700 to 660 billion n government spending, will decrease GDP byGroup of answer choices40 billion10 billion160 billion20 billion
Question
Solution 1
The question is asking about the impact of a decrease in government spending on the Gross Domestic Product (GDP) given a Marginal Propensity to Consume (MPC) of 0.75.
The Marginal Propensity to Consume is the increase in consumer spending due to an increase in income. In this case, a decrease in g Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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