Suppose That Technological Advancements Stimulate $20 Billion in Additional Investment

question 136

Multiple Choice

Suppose that technological advancements stimulate $20 billion in additional investment spending. If the MPC = 0.6, how much will the change in investment increase aggregate demand?

• A) $12 billion
• B) $20 billion
• C) $33.3 billion
• D) $50 billion

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Definitions:

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