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If Autonomous Consumption Rises by $0

Question 6

Multiple Choice

If autonomous consumption rises by $0.8 trillion and the marginal propensity to consume (MPC) equals 3/4,the equilibrium level of output demanded will rise by


A) $0.2 trillion
B) $0.6 trillion
C) $1.07 trillion
D) $2.4 trillion
E) $3.2 trillion

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