Assume that in a private closed economy consumption

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Assume that in a private closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion level of domestic output. Thus:

saving is $10 billion.

unplanned decreases in inventories of $10 billion will occur.

the MPC is .80.

unplanned increases in inventories of $10 billion will occur.

Reference no: EM13771178

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