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Suppose That Technological Advancements Stimulate $20 Billion in Additional Investment

Question 78

Multiple Choice

Suppose that technological advancements stimulate $20 billion in additional investment spending.If the MPC = .6,how much will the change in investment increase aggregate demand?


A) $12 billion.
B) $20 billion.
C) $33.3 billion.
D) $50 billion.

Correct Answer:

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