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Use the Information Below to Answer the Following Questions

Question 79

Multiple Choice

Use the information below to answer the following questions.
Fact 27.3.1
An economy has a fixed price level, no imports, and no income taxes. MPC is 0.5 and real GDP is $200 billion. Businesses increase investment by $2 billion.
-Consider Fact 27.3.1. The multiplier is


A) 0.5.
B) 2.0.
C) 2.5.
D) 0.75
E) 0.8.

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