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Figure 23-3 -Refer to Figure 23-3. Suppose That Investment Spending Decreases by Spending

Question 36

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Figure 23-3 Figure 23-3 -Refer to Figure 23-3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP<sub>2</sub> to GDP<sub>1</sub>. If the MPC is 0.8, then what is the change in GDP? A) -$4 million B) -$5 million C) -$25 million D) -$40 million
-Refer to Figure 23-3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP2 to GDP1. If the MPC is 0.8, then what is the change in GDP?


A) -$4 million
B) -$5 million
C) -$25 million
D) -$40 million

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