please answer this correctly, this is for my exam!

timer Asked: Aug 19th, 2015

Question description

Given a marginal propensity to save = .30 and marginal propensity to import = .20, then an increase in government spending = $ 1 billion will cause GDP to

a. remain unchanged

b. rise by $ 4 billion.

c. rise by $ 2 billion.

d. rise by $ 5 billion.

e. rise by $ 1 billion.

f. rise by $ 3.33 billion.

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