Multiple Choice
.If MPC=0.8 and MPM=0.05,a $100 million increase in exports will lead to:
A) a $400 million increase in equilibrium GDP.
B) a $400 million decrease in equilibrium GDP.
C) a $500 million increase in equilibrium GDP.
D) a $500 million increase in equilibrium GDP
Correct Answer:
Verified
Correct Answer:
Verified
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