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    If Investment Decreases by $20 Billion and the MPC =
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If Investment Decreases by $20 Billion and the MPC =

Question 129

Question 129

Multiple Choice

If investment decreases by $20 billion and the MPC = 0.8, the resulting decrease in the consumption component of AD is:


A) ​$16 billion.
B) ​$4 billion.
C) ​$100 billion.
D) ​$80 billion.

Correct Answer:

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