If the marginal propensity to consume is .9 in a private closed economy,a $20 billion decline in investment spending will decrease:
A) GDP by $20 billion.
B) GDP by $100 billion.
C) saving by $20.
D) consumption by $200 billion.

Question

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The Answer of If the marginal propensity to consume is .9 in a private closed economy,a $20 billion decline in investment spending will decrease:
A) GDP by $20 billion.
B) GDP by $100 billion.
C) saving by $20.
D) consumption by $200 billion.

If the Marginal Propensity to Consume Is