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If an Increase in Autonomous Consumption Spending of $10 Million

Question 89

Multiple Choice

If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then

A) the MPC is 0.2.
B) the MPC is 0.5.
C) the MPC is 0.75.
D) the MPC is 0.8.
E) the MPC is 0.9.

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