In a closed economy without a government sector, investment rises by $100 million and real income rises by $500 million. What is the marginal propensity to consume?
- A0.2
- B0.4
- C0.8
- D5.0
Economics 9708 · AS & A Level · Aggregate demand and aggregate supply
In a closed economy without a government sector, investment rises by $100 million and real income rises by $500 million. What is the marginal propensity to consume?