Author Question: In an economy that has no foreign trade, if real GDP declines by 160 million following a decline in ... (Read 67 times)

big1devin · **on:** Jun 30, 2018

In an economy that has no foreign trade, if real GDP declines by 160 million following a decline in investment spending of 40 million, then the marginal propensity to consume must be equal to _____.
a. 2
b. 0.33
c. 4
d. 0.75
e. 0.4

Question 2

The law of demand states that, ceteris paribus, an increase in
a. price causes quantity demanded to increase.
b. price causes quantity demanded to decrease.
c. quantity demanded causes price to increase.
d. quantity demanded causes price to decrease.