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QUESTION

If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in GDP and income of $60,000,...

If the government increased its purchases of goods and services by $12,000, and this resulted in an eventual increase in GDP and income of $60,000, the MPS would be equal to

A) 0.2.

B) 0.4.

C) 0.8.

D) 2.

what formula should I use? a detailed solution would be really helpful too!

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