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    Principles of Macroeconomics Study Set 12
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    Exam 8: Aggregate Expenditure and Equilibrium Output
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    Assume There Is No Government or Foreign Sector
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Assume There Is No Government or Foreign Sector

Question 161

Question 161

Multiple Choice

Assume there is no government or foreign sector. If the MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by


A) $20 billion.
B) $50 billion.
C) $100 billion.
D) $200 billion.

Correct Answer:

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