If the government increases its spending by $15 billion and, as a result, output in the economy grows by $60 billion due to the expenditure multiplier effect. Assuming no leakages like imports or taxes, what is the Marginal Propensity to Consume in the economy.   Select one: a. .15 b. .25 c. .50 d. .75 e. .80

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Chapter1: Making Economics Decisions
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If the government increases its spending by $15 billion and, as a result, output in the economy grows by $60 billion due to the expenditure multiplier effect. Assuming no leakages like imports or taxes, what is the Marginal Propensity to Consume in the economy.  

Select one:
a. .15
b. .25
c. .50
d. .75
e. .80
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