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Assume That the Marginal Propensity to Consume Is 0

Question 242

Multiple Choice

Assume that the marginal propensity to consume is 0.75. John's Clean Clones builds a factory that costs $1 billion. How much does the macroeconomic equilibrium increase by?


A) $1 billion
B) $0
C) $10 billion
D) $4 billion

Correct Answer:

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