4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending
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4. If the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will increase real GDP by
a. $100 million.
b. $200 million.
c. $50 million.
d. $150 million.
e. $300 million.
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