If the marginal propensity to save is 0.2 in a private closed 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 a private closed 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