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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    If It Becomes Less Expensive for Firms to Hold Excess
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If It Becomes Less Expensive for Firms to Hold Excess

Question 261

Question 261

Multiple Choice

If it becomes less expensive for firms to hold excess capital and labor, the multiplier will


A) decrease.
B) remain unchanged.
C) increase.
D) either increase or decrease depending on the value of the MPC.

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