Assume the marginal propensity to consume is 0.8. If consumer spending rises by $20 billion, then total income through the multiplier effect will:
a. Will not change
b. Decrease by $100 billion
c. Increase by $100 billion
d. Increase by $10 billion
Ans: c. Increase by $100 billion
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Tomas wants the city to convert a portion of an existing public park to a covered bus stop so it is more convenient to catch a bus to work each day
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