Explore BrainMass
Share

Explore BrainMass

    increase in consumption

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If autonomous consumption rises by $0.8 trillion and the marginal propensity to consume (MPC) equals 3/4, the equilibrium level of output demanded will rise by
    a. $0.2 trillion
    b. $0.6 trillion
    c. $1.07 trillion
    d. $2.4 trillion
    e. $3.2 trillion

    © BrainMass Inc. brainmass.com October 9, 2019, 5:30 pm ad1c9bdddf
    https://brainmass.com/economics/macroeconomics/increase-autonomous-consumption-59070

    Solution Summary

    The expert examines the increase in autonomous consumption for marginal propensity to consume.

    $2.19