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If Autonomous Investment Decreases by $60 Billion, Equilibrium Real GDP

Question 95

Multiple Choice

If autonomous investment decreases by $60 billion, equilibrium real GDP demanded will


A) increase by $60 billion
B) decrease by $60 billion
C) decrease by ($60 billion) × MPC
D) decrease by $60 billion × (1 - MPC)
E) decrease by $60 billion/MPS

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