If a fall in investment demand of 100 units causes equilibrium income
If a fall in investment demand of 100 units causes equilibrium income to fall by 150 units in the simple Keynesian model, then the marginal propensity to save must be
a. .25.
b. 1.5.
c. .5.
d. 1/3.
e. 2/3.
ANSWER
D
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.