If disposable income is 85 per cent of national income, the marginal propensity to consume (out of disposable income) is 0.7, and imports are 22 per cent of national income, then the marginal propensity to spend on national output is:
If disposable income is 85 per cent of national income, the marginal propensity to consume (out of disposable income) is 0.7, and imports are 22 per cent of national income, then the marginal propensity to spend on national output is:
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 4SQ
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Transcribed Image Text:If disposable income is 85 per cent of national income, the marginal
propensity to consume (out of disposable income) is 0.7, and imports
are 22 per cent of national income, then the marginal propensity to
spend on national output is:
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