If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase
A) GDP by $120 billion.
B) GDP by $20 billion.
C) saving by $25 billion.
D) consumption by $80 billion.

Question

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The Answer of If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase
A) GDP by $120 billion.
B) GDP by $20 billion.
C) saving by $25 billion.
D) consumption by $80 billion.

If the Marginal Propensity to Save Is 0