2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

In an economy, the marginal propensity to consume ( $M P C$ ) is 0.8. All other things being equal, which one of the following statements is correct?

If injections into the circular flow of income rise by £15 billion, national income will rise by £18.75 billion.

When the economy's national income equals £250 billion, total consumption in the economy must equal £200 billion.

A £60 billion increase in national income will lead to a £48 billion increase in consumption.

If injections into the circular flow of income rise by £16 billion, national income will rise by £20 billion.

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

A Level
Economics
2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

In an economy, the marginal propensity to consume ( $M P C$ ) is 0.8. All other things being equal, which one of the following statements is correct?

If injections into the circular flow of income rise by £15 billion, national income will rise by £18.75 billion.

When the economy's national income equals £250 billion, total consumption in the economy must equal £200 billion.

A £60 billion increase in national income will lead to a £48 billion increase in consumption.

If injections into the circular flow of income rise by £16 billion, national income will rise by £20 billion.