Using Keynesian multiplier, MPC= 0.8 and government spending increase – McqOptions

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1.	Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billion dollars. How much will GDP increased?
A.	100 billion dollars
B.	200 billion dollars
C.	300 billion dollars
D.	500 billion dollars
Answer» C. 300 billion dollars

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