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If the Marginal Propensity to Consume (MPC)is 0

Question 167

Multiple Choice

If the marginal propensity to consume (MPC) is 0.90, a $100 increase in investment spending, other things being equal, will cause an increase in equilibrium real GDP of:


A) $90.
B) $100.
C) $900.
D) $1,000.

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