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If an Economy Saves 20 Percent of Any Increase in Real

Question 211

Multiple Choice

If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP) , then an increase in investment of $2 billion can produce an increase in real Gross Domestic Product (GDP) of as much as


A) $2 billion.
B) $10 billion.
C) $0.4 billion.
D) $1.6 billion.

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