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In the Keynesian AE Model,if the Autonomous Components of Consumption,investment,government

Question 143

Multiple Choice

In the Keynesian AE model,if the autonomous components of consumption,investment,government spending,and net export spending initially total $200 billion,and the MPS is 0.2,by how much will equilibrium output change if governments increase their spending by $5 billion?


A) by $1 billion
B) by $5 billion
C) by $10 billion
D) by $25 billion

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