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    Principles of Economics Study Set 11
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    Exam 29: Fiscal Policy
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    If the Marginal Propensity to Consume (MPC)equals 0
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If the Marginal Propensity to Consume (MPC)equals 0

Question 76

Question 76

Essay

If the marginal propensity to consume (MPC)equals 0.75 and the government increases spending by $200 billion,what is the total impact on spending?

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The total impact on spending would be $8...

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