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If the MPS Is One-Third, a $100 Increase in Net

Question 40

Multiple Choice

If the MPS is one-third, a $100 increase in net exports will


A) reduce real Gross Domestic Product (GDP) by $100.
B) reduce real Gross Domestic Product (GDP) by $300.
C) increase real Gross Domestic Product (GDP) by $33.
D) increase real Gross Domestic Product (GDP) by $300.

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