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    Economics Today Study Set 1
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    Exam 12: Consumption, Real GDP, and the Multiplier
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    If the MPC = 0
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If the MPC = 0

Question 124

Question 124

Multiple Choice

If the MPC = 0.8, and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by


A) $64 billion.
B) $80 billion.
C) $320 billion.
D) $400 billion.

Correct Answer:

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