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Suppose Real GDP Increases from $13 Trillion to $14 Trillion

Question 94

Multiple Choice

Suppose real GDP increases from $13 trillion to $14 trillion and, as a result, consumption expenditure increases from $13 trillion to $13.75 trillion. This result implies that the MPS equals


A) 0.75.
B) 0.25.
C) 0.
D) some amount that cannot be determined without more information.

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