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Suppose Autonomous Investment Increases by $100 Billion

Question 92

Multiple Choice

Suppose autonomous investment increases by $100 billion.How will the equilibrium real GDP demanded be affected?  


A)  It will increase by $100 billion. 
B)  It will increase by ($100 billion) /MPC. 
C)  It will increase by $100 billion × MPC. 
D)  It will increase by $100 billion/MPS.

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