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ECONOMICS MCQ- JUNE 2006 P3 Q 20

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20 A closed economy with no government has an equilibrium level of national income of
$10 000 million. Consumption expenditure is $8000 million.
Assuming that the MPC = APC what will be the change in national income following an increase
in investment of $100 million?
A $100 m B $120 m C $400 m D $500 m

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