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If an Increase in Autonomous Consumption Spending of $25 Million

Question 67

Multiple Choice

If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then

A) the MPC is 0.25.
B) the MPC is 0.75.
C) the MPC is 0.8.
D) the MPC is 0.9.
E) the MPC is 2.5.

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