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Suppose Autonomous Investment Decreases by $60 Billion

Question 73

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Suppose autonomous investment decreases by $60 billion.How will the equilibrium real GDP demanded be affected?  


A)  It will increase by $60 billion. 
B)  It will decrease by $60 billion. 
C)  It will decrease by $60 billion × MPC. 
D)  It will decrease by $60 billion/MPS.

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