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In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity
In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity to consume is 0.8. The multiplier is:
a)1.25
b) 5
c) 4
d) 2.5
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