If the marginal propensity to consume is 0.8 and the government spending decreases by $50 million, then equilibrium GDP will decrease by:
A)$40 million.
B)$50 million.
C)$200 million.
D)$250 million.

Question

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The Answer of If the marginal propensity to consume is 0.8 and the government spending decreases by $50 million, then equilibrium GDP will decrease by:
A)$40 million.
B)$50 million.
C)$200 million.
D)$250 million.

If the Marginal Propensity to Consume Is 0