assume that the marginal propensity to sonsume(mpc)=0.8(mps=0.2).a $100billion increase of Govn't spending=?

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assume that the marginal propensity to sonsume(mpc)=0.8(mps=0.2).a $100billion increase of Govn't spending=?

a) GDP increase of $400 billion
b) GDP decrease of $500 billion
c) GDP increase of $500 billion
d) intdterminate change of GDP

what's the answer?

2006-12-04 06:54:24 · 3 answers · asked by christineohyes 1 in Social Science ➔ Economics

3 answers

c) GDP increase of $500 billion

2006-12-04 07:07:13 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋

i had a similar econ question and someone helped me out at http://www.schoolpiggyback.com ....not sure if it'll help but its other students that answer questions (maybe someone from your class...lol)...worth a shot...goodluck : )

2006-12-04 16:22:20 · answer #2 · answered by tshac 1 · 0⤊ 0⤋

stop doin your homewerk like a homo and go bang some chicks

2006-12-04 14:56:33 · answer #3 · answered by realmenwearfur 1 · 0⤊ 1⤋