If the MPC equals 0.75, then

If the MPC equals 0.75, then



A) for every $100 increase in consumption, real Gross Domestic Product (GDP) increases by $75.
B) consumption is always more than real Gross Domestic Product (GDP).
C) for every $100 increase in real Gross Domestic Product (GDP), saving increases by $75.
D) for every $100 increase in real Gross Domestic Product (GDP), saving increases by $25.


Answer: D


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