Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP

Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP

Naim 05:29

Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP




A) $75 of additional real disposable income.
B) $25 of additional saving.
C) $56.25 of additional consumption spending.
D) $25 of additional saving and taxes.



Answer: D


Learn More :