If autonomous investment increases by $200 million and the marginal propensity to consume (MPC) is 0.75, then

A. real Gross Domestic Product (GDP) will rise by $400 million.
B. real Gross Domestic Product (GDP) will rise by $800 million.
C. real Gross Domestic Product (GDP) will fall by $200 million.
D. real Gross Domestic Product (GDP) will rise by $200 million.


Answer: B

Economics

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