Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP
A)$75 of additional real disposable income.
B)$25 of additional saving.
C)$56.25 of additional consumption spending.
D)$25 of additional saving and taxes.

Question

Quizplus · Accepted Answer

The Answer of Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real GDP
A)$75 of additional real disposable income.
B)$25 of additional saving.
C)$56.25 of additional consumption spending.
D)$25 of additional saving and taxes.

Using Real GDP on the Horizontal Axis Instead of Real