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    Exam 9: The Keynesian Model in Action
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    If an Increase in Investment of $50 Causes an Increase
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If an Increase in Investment of $50 Causes an Increase

Question 172

Question 172

Multiple Choice

If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:


A) 5.
B) .20.
C) .80.
D) 3.
E) 10.

Correct Answer:

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