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18 September, 13:18

Recently, the level of gdp has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. aggregate expenditures must have fallen by select one:

a. $45 billion.

b. $30 billion.

c. $15 billion.

d. $60 billion.

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  1. 18 September, 14:47
    0
    a. $45 billion.

    Explanation:

    The aggregate expenditures must have fallen by = 0.75*$65 billion

    = $45 billion

    Therefore, The aggregate expenditures must have fallen by $45 billion.
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