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Suppose Real GDP Increases from $9 Trillion to $10 Trillion

Question 328

Multiple Choice

Suppose real GDP increases from $9 trillion to $10 trillion. As a result, consumption expenditure increases from $9 trillion to $9.75 trillion. This result implies the MPS equals


A) 0.25.
B) 0.75.
C) 0.
D) some amount that cannot be determined without more information.

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