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AE Model: Private Closed Economy
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Problem 1
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Problem 10
AE Model: Private Closed Economy
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16. Deriving the Aggregate Expenditures Model / AE Model: Private Closed Economy / Problem 4
Problem 4
If the base level of consumption is \$50 billion and the MPC is 0.4, what is the consumption level when GDP is \$200 billion?
A
\$90 billion
B
\$80 billion
C
\$110 billion
D
\$130 billion
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