A $1 Billion Increase in Investment Will Cause A

question 42

Multiple Choice

A $1 billion increase in investment will cause a:

• A)(1/MPS) billion increase in equilibrium GDP.
• B)(MPS) billion increase in equilibrium GDP.
• C)(1 - MPC) billion increase in equilibrium GDP.
• D)(MPC - MPS) billion increase in equilibrium GDP.

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