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Business, 06.05.2020 04:11 keananashville

Suppose that investment demand increases by $300 billion in a closed and private economy (no government or foreign trade). Assume further that households have a marginal propensity to consume of 80 percent. Ultimately, how much will aggregate demand increase? Enter your answer in billions. For example if your answer is $600 billion then enter 600. If your answer is $1,500 then enter 1500.

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Suppose that investment demand increases by $300 billion in a closed and private economy (no governm...
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