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Business, 31.10.2019 06:31 Felici8617

Suppose that a financial crisis decreases investment spending by $100 billion and the marginal propensity to consume is 0.8. assuming no taxes and no trade, real gdp will by

(a) increase; $400 billion
(b) decrease; $800 billion
(c) decrease; $200 billion
(d) decrease; $500 billion

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Answers: 3

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