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In a Simple, Private Economy, Suppose That the MPC Is

Question 38

Multiple Choice

In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million.At the new equilibrium, how much will saving have increased?


A) $8 million
B) $16 million
C) $20 million
D) $80 million
E) $100 million

Correct Answer:

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