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Suppose That Planned Investment Increases by $200 Billion and That

Question 71

Multiple Choice

Suppose that planned investment increases by $200 billion and that the marginal propensity to consume equals 0.80.The aggregate expenditure line will shift upward by __________ at every level of real GDP.


A) $40 billion
B) $160 billion
C) $200 billion
D) $250 billion
E) $1,000 billion

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