Question: Question Other things being constant, if the marginal propensity to save (MPS) is 0.2, and private investment spending falls by $100 million, then real Gross

Question Other things being constant, if the marginal propensity to save (MPS) is 0.2, and private investment spending falls by $100 million, then real Gross Domestic Product (GDP) 1.increases by $80 million.

2.decreases by $500 million.

3.decreases by $50 million.

4.increases by $1 billion.

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