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If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in GDP and income of $60,000,...
If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in GDP and income of $60,000, the MPS would be equal to
A) 0.2.
B) 0.4.
C) 0.8.
D) 2.
what formula should I use? a detailed solution would be really helpful too!