Economics

The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the result of an increase in the aggregate expenditures schedule of:
a. $10 billion
b. $15 billion
c. $16 billion
d. $40 billion

Take a shot. Hint, calculate a multiplier.

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  1. a.$10 billion

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