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Suppose Equilibrium Real GDP Demanded Rises from $4 Trillion to $6

Question 137

Multiple Choice

Suppose equilibrium real GDP demanded rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion.What is the marginal propensity to consume?  


A)  0.8 
B)  0.5 
C)  0.4 
D)  0.2

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