If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000 and real income rises by $12,000 . by how much will real consumption spending increase?

a. $9,000
b. $8,000
c. $7,500
d. $7,000
e. $10,000

A

Economics

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Which of the following conditions must be satisfied for the demand for domestic goods to be equal to the domestic demand for goods?

A) X = ?IM B) X = 0 C) G - T = 0 D) S = I E) X = IM/?

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