Assume there is no crowding-out effect.If an increase in government spending of $10 billion raises the total aggregate demand by $50 billion, then the marginal propensity is:
A)0.2
B)0.5
C)5
D)0.8

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The Answer of Assume there is no crowding-out effect.If an increase in government spending of $10 billion raises the total aggregate demand by $50 billion, then the marginal propensity is:
A)0.2
B)0.5
C)5
D)0.8

Assume There Is No Crowding-Out Effect