Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by $20 billion. If the economy's marginal propensity to consume is 0.75, the equilibrium level of aggregate real GDP will increase by:
A. $15 billion.
B. $20 billion.
C. $50 billion.
D. $80 billion.
Answer: D
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a. True b. False
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