Multiple Choice
Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
A) $15 billion.
B) $20 billion.
C) $50 billion.
D) $80 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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Q19: Exhibit 9-8 Keynesian aggregate expenditures model<br><br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
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Q22: Exhibit 9-1 GDP and consumption data<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
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Q25: Exhibit 9-1 GDP and consumption data<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"
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