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If the marginal propensity to save (MPS) is 0.25, investment spending (1) is $600 million, and the government increases its purchases of goods and services
If the marginal propensity to save (MPS) is 0.25, investment spending (1) is $600 million, and the government increases its purchases of goods and services (G) by $150 million, then real GDP increases by a. $200 million b. $600 million c. $800 million d. $2,400 million (Ctrl)
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