Suppose that the government increases spending by $100 billion as a stimulus package. If the marginal propensity to consume is 0.6, then real GDP will: decrease by $400 billion. increase by $600 billion. decrease by $250 billion. increase by $250 billion
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Home » Business » Suppose that the government increases spending by $100 billion as a stimulus package. If the marginal propensity to consume is 0.6, then real GDP will: decrease by $400 billion. increase by $600 billion. decrease by $250 billion.