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Name: 24. If $1,000 of additional spending occurs and the marginal propensi
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Description: 24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8,the total effect on the economy is an increase ofA) S800B) $1,000C) $5,000D) $8,000in income or output.

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24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total effect on the economy is an increase of A) $800 B) $1,000 C) $5,000 D) $8,000 in income or output.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.10P

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