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    increase in consumption

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    If autonomous consumption rises by $0.8 trillion and the marginal propensity to consume (MPC) equals 3/4, the equilibrium level of output demanded will rise by
    a. $0.2 trillion
    b. $0.6 trillion
    c. $1.07 trillion
    d. $2.4 trillion
    e. $3.2 trillion

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    Solution Summary

    The expert examines the increase in autonomous consumption for marginal propensity to consume.