Suppose that in an economy with lump-sum taxes and no international trade, autonomous investment spending increases by $2 million. if the marginal propensity to consume is 0. 75, equilibrium gross domestic product will change by a maximum of $0. 5 million answer a: $0. 5 million a $1. 5 million answer b: $1. 5 million b $2. 0 million answer c: $2. 0 million c $8. 0 million answer d: $8. 0 million d $15. 0 million

Q&A Education