If the marginal propensity to consume (MPC) is 0.8 and the parliament votes for a $100 million tax cut. What is the change in aggregate demand?
A) $250 million.
B) $200 million.
C) $100 million.
D) $80 million.

Question

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The Answer of If the marginal propensity to consume (MPC) is 0.8 and the parliament votes for a $100 million tax cut. What is the change in aggregate demand?
A) $250 million.
B) $200 million.
C) $100 million.
D) $80 million.

If the Marginal Propensity to Consume (MPC) Is 0