If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP Group of answer choices Decreases by $25 billion Increases by $40 billion Decreases by $20 billion Increases by $20 billion

If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP Group of answer choices Decreases by $25 billion Increases by $40 billion Decreases by $20 billion Increases by $20 billion

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.12P

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Question

If investment falls by $5 billion and the marginal propensity to consume is 0.75. So Real GDP

Group of answer choices

Decreases by $25 billion

Increases by $40 billion

Decreases by $20 billion

Increases by $20 billion

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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