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    Macroeconomics Study Set 9
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    Exam 10: Explaining Aggregate Demand: the Is-Mp Model
  5. Question
    If the MPC = 0
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If the MPC = 0

Question 18

Question 18

Multiple Choice

If the MPC = 0.8,an increase in investment spending from $35 billion to $38 billion will increase real GDP by


A) $3 billion.
B) $3.75 billion.
C) $15 billion.
D) $24 billion.

Correct Answer:

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