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Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP 1to GDP 2, and this amount is $400 billion. If

Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases fromGDP 1toGDP 2, and this amount is $400 billion. If the MPC is 0.75, then what is the distance betweenNandLor by how much did government spending change?

$10 billion

$100 billion

$200 billion

$300 billion

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