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    Economics Principles and Policy Study Set 1
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    Exam 26: Demand-Side Equilibrium: Unemployment or Inflation
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    Assume That the MPC Is
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Assume That the MPC Is

Question 204

Question 204

Multiple Choice

Assume that the MPC is .75, and investment spending rises by $25 billion.How much will real GDP change?


A) $25 billion 
B) $75 billion 
C) $100 billion 
D) $175 billion

Correct Answer:

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