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If the government increases its purchases of goods and


If the government increases its purchases of goods and services by $3,000 and the MPC is 0.8, GDP and income will eventually increase by

  1. A $2,400
  2. B $6,000
  3. C $15,000
  4. D $24,000 

What formula should I use? a detailed solution would be really helpful too!

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Macroeconomics: If the government increases its purchases of goods and
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