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Suppose That the Slope of the AE Curve Is 0

Question 290

Multiple Choice

Suppose that the slope of the AE curve is 0.80. Then an increase of investment of $10 billion leads to an increase in equilibrium real GDP equal to

A) $12.5 billion.
B) $10.0 billion.
C) $8.0 billion.
D) $50.0 billion.

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