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Autonomous Planned Spending in a Country Rises by $60 Billion

Question 76

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Autonomous planned spending in a country rises by $60 billion when its MPC = 2/3. How much will the equilibrium level of real GDP change according to the aggregate expenditures model with the full potential multiplier effect?


A) It will increase by $120 billion.
B) It will decrease by $90 billion.
C) It will increase by $180 billion.
D) There will be no change in equilibrium real national income.

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