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Problem

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question

If the capital/output ratio is 2.5, and GNP rises from 985billionto985 billionto 1,055 billion, by how much can investment be expectedto increase, assuming no depreciation? Also, if themarginal propensity to consume is 0.5, what will be the extrachanges in GNP induced by the original rise?
Plain-text mathematical notation (without MathML)
If the capital/output ratio is 2.5, and GNP rises from 985billionto1,055 billion, by how much can investment be expectedto increase, assuming no depreciation? Also, if themarginal propensity to consume is 0.5, what will be the extrachanges in GNP induced by the original rise?
Original LaTeX notation
If the capital/output ratio is 2.5, and GNP rises from $985 billionto $1,055 billion, by how much can investment be expectedto increase, assuming no depreciation? Also, if themarginal propensity to consume is 0.5, what will be the extrachanges in GNP induced by the original rise?

category

economics

options

  1. $100 billion and $200 billion
  2. $200 billion and $400 billion
  3. $150 billion and $300 billion
  4. $175 billion and $350 billion
  5. $160 billion and $320 billion
  6. $140 billion and $280 billion
  7. $125 billion and $250 billion
  8. $220 billion and $440 billion
  9. $130 billion and $260 billion
  10. $190 billion and $380 billion

src

stemez-Economics

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