Multiple Choice
Suppose lower expectations lead to a decrease of $240 in desired investment in the economy and the marginal propensity to consume is 0.75. Table 10.2
In Table 10.2,what is the cumulative decrease in expenditure by the end of the second cycle?
A) -$960.00.
B) -$180.00.
C) -$480.00.
D) -$420.00.
Correct Answer:
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