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If the Marginal Propensity to Consume Is 2/3 and Autonomous

Question 59

Multiple Choice

If the marginal propensity to consume is 2/3 and autonomous consumption spending increases by $3 trillion,what is the change in GDP?

A) $3 trillion
B) $1 trillion
C) -$3 trillion
D) $9 trillion
E) -$9 trillion

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