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If the MPC of an Economy Is

Question 148

Multiple Choice

If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by


A) $50 million.
B) more than $50 million but less than $500 million.
C) $500 million.
D) more than $500 million.

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