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If Autonomous Consumption Is $1,000,the MPC Is 0

Question 210

Multiple Choice

If autonomous consumption is $1,000,the MPC is 0.75,net taxes are $500,investment spending is $800,and government purchases equals $500,and NX = $0,what is equilibrium GDP?


A) $1,800
B) $1,925
C) $2,566.7
D) $7,200
E) $7,700

Correct Answer:

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