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Multiplier Effect of Investment Spending

14. Income and Consumption / Multiplier Effect of Investment Spending / 문제 1

문제 1

If the MPC is 0.85 and the initial investment is \$5 billion, what is the resulting increase in GDP?

A

\$25 billion

B

\$15 billion

C

\$20 billion

D

\$33.33 billion