Multiple Choice
Suppose lower interest rates suddenly lead to an injection of $325 additional investment spending into the economy and the marginal propensity to consume is 0.80. Table 10.1
In Table 10.1,what is the cumulative increase in expenditure by the end of the second cycle?
A) $585.
B) $390.
C) $260.
D) $65.
Correct Answer:
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