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Marginal propensity to consume equals

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Suppose the marginal propensity to consume equals 0.8 (i.e., c1 = 0.8). Given this information, which of the following events will cause the largest increase in output? a) G increases by 200. b) I increases by 150. c) T decreases by 200. d) both a and b. e) none of the above.

Reference no: EM131988910

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