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Use the Following Situation to Answer the Question : Situation

Question 124

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Use the following Situation to answer the question : situation 20-1
Assume a closed economy with no government. Suppose that autonomous consumption equals $400, planned investment equals $500, and the mpc equals 0.9.
-Using the information in Situation 20-1,if aggregate output equals $8,000,the unplanned inventory investment equals


A) -$100.
B) $0.
C) $100.
D) $500.

Correct Answer:

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