Hi, Could someone please help me with Q14 from Sept2012. I've reviewed the other posts relating to this topic but still can't figure this one out. Open economy, no taxation, marginal propensity to save is 0.25. Level of income is €800million. Rise in Govt expenditure of €100. What is likely level of consumption?: A: €700m B: €800m C: €900m D: €1000m
