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If the Economy Is Currently at Equilibrium at $1 Trillion

Question 118

Multiple Choice

If the economy is currently at equilibrium at $1 trillion and the MPC is 0.6,a $100 decrease in government purchases of goods and services will result in a new equilibrium at


A) $600 billion
B) $400 billion
C) $750 billion
D) $1.4 trillion
E) $1.6 trillion

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