In an economy that has no foreign trade, if real GDP declines by ...

[big1devin]

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.

[at]

Answer to Question 1

d

Answer to Question 2

b

[big1devin]

Excellent

[ricroger]

Thanks for the timely response, appreciate it