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Suppose Planned Autonomous Investment Increases by $200 Billion and the Marginal

Question 128

Multiple Choice

Suppose planned autonomous investment increases by $200 billion and the marginal propensity to consume equals 0.80.What will be the increase in the equilibrium level of real GDP?  


A)  $160 billion 
B)  $200 billion 
C)  $250 billion 
D)  $1,000 billion

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