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An economy has a fixed price level, no imports, and no income taxes. MPC is 0.5, and real GDP is $250 billion. Businesses increase investment

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An economy has a fixed price level, no imports, and no income taxes. MPC is 0.5, and real GDP is $250 billion. Businesses increase investment by $5 billion. Calculate the new level of real GDP and explain why real GDP increases by more than $5 billion. The new level of real GDP is $ billion. Real GDP increases by more than $5 billion because the increase in investment O A. increases exports O B. induces an increase in consumption expenditure O C. enables firms to produce more output O D. increases the marginal propensity to consume

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