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In the Short Run with Fixed Prices, an Increase in Investment

Question 317

Multiple Choice

In the short run with fixed prices, an increase in investment of $100 billion


A) increases real GDP by $100 billion.
B) increases real GDP by less than $100 billion.
C) increases real GDP by more than $100 billion.
D) decreases real GDP by $100 billion because of the decrease in induced expenditures.

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