suppose that investment spending increases by 10


Suppose that investment spending increases by $10 million, shifting up the aggregate expenditure line and increasing GDP from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP?
A) $9 million
B) $10 million
C) $90 million
D) $100 million

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Microeconomics: suppose that investment spending increases by 10
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