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Suppose the Marginal Propensity to Consume (MPC)is 0

Question 65

Multiple Choice

Suppose the marginal propensity to consume (MPC) is 0.9 and there is a $3,000 increase in planned investment. Given this information, real GDP will increase by


A) $3,000.
B) $2,700.
C) $30,000.
D) $3,333.

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