If the marginal propensity to save is equal to 0.5 in the simple Keyne
If the marginal propensity to save is equal to 0.5 in the simple Keynesian model, then a 10-unit increase in government spending will cause output to rise by
a. 5 units.
b. 10 units.
c. 20 units.
d. 25 units.
e. 40 units.
ANSWER
C
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