Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

Within a closed economy that has no government sector, the marginal propensity to consume remains 0.6 at every income level. Private sector investment rises by $100 million. By how much will national income increase?

  • A$60 million
  • B$100 million
  • C$166 million
  • D$250 million

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