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If the Economy Spends 80 Percent of Any Increase in Real

Question 64

Multiple Choice

If the economy spends 80 percent of any increase in real GDP, then an increase in investment of $1 billion would result ultimately in an increase in real GDP of:


A) $0.
B) $0.8 billion.
C) $1.0 billion.
D) $5.0 billion.

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