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A Permanent Increase in Autonomous Investment Causes

Question 246

Multiple Choice

A permanent increase in autonomous investment causes


A) a more than proportional increase in real Gross Domestic Product (GDP) .
B) a proportional increase in real Gross Domestic Product (GDP) .
C) a less than proportional increase in real Gross Domestic Product (GDP) .
D) an offsetting change in saving that leaves real Gross Domestic Product (GDP) at the same level.

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