If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
A) − $300 million.
B) − $200 million.
C) − 100 million.
D) − $50 million.

Question

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The Answer of If the marginal propensity to consume (MPC) is 0.75, and if policy makers wish to increase real GDP by $300 million, then by how much would they have to change taxes?
A) − $300 million.
B) − $200 million.
C) − 100 million.
D) − $50 million.

If the Marginal Propensity to Consume (MPC) Is 0