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Suppose That Planned Autonomous Investment Increases by $200 Billion and That

Question 135

Multiple Choice

Suppose that planned autonomous investment increases by $200 billion and that the marginal propensity to consume equals 0.80.The equilibrium level of real GDP will increase by


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

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