Suppose the marginal propensity to consume (MPC) is 0.9 and there is a $4,000 increase in planned investment. Given this information, real GDP will increase by
A) $20,000.
B) $10,000.
C) $40,000.
D) $45,000.

Question

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The Answer of Suppose the marginal propensity to consume (MPC) is 0.9 and there is a $4,000 increase in planned investment. Given this information, real GDP will increase by
A) $20,000.
B) $10,000.
C) $40,000.
D) $45,000.

Suppose the Marginal Propensity to Consume (MPC) Is 0