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    Principles of Economics Study Set 12
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    Exam 23: The Nature and Causes of Economic Fluctuations
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    Suppose That MPC = 0
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Suppose That MPC = 0

Question 61

Question 61

Multiple Choice

Suppose that MPC = 0.5 and MPI = 0, the Keynesian multiplier equals


A) 50.
B) 5.
C) 10.
D) 2.5.
E) 2.

Correct Answer:

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