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    Principles of Money Banking
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    Exam 22: The Classical Foundations
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    Assume That Consumption Spending Is Equal to $600, Government Spending
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Assume That Consumption Spending Is Equal to $600, Government Spending

Question 3

Question 3

Multiple Choice

Assume that consumption spending is equal to $600, government spending is $100 billion, and GDP is $800 billion. If net exports are equal to zero, investment spending must be


A) $700 billion.
B) $600 billion.
C) $500 billion.
D) $100 billion.

Correct Answer:

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