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    Principles of Money Banking
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    Exam 23: The Keynesian Framework
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    If the MPC Is 0
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If the MPC Is 0

Question 66

Question 66

Multiple Choice

If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________.


A) increase; $90
B) decrease; $90
C) increase; $100
D) decrease; $100

Correct Answer:

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