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Suppose the Overall MPC Is 0

Question 10

Multiple Choice

Suppose the overall MPC is 0.9. If a $2 billion increase in imports to the United States will lead to a $10 billion decrease in GDP, the value of the marginal propensity to import must be


A) 0.1.
B) 0.2.
C) 0.5.
D) 0.8.

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