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