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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 167

Question 167

Multiple Choice

Suppose that MPC = 0.9 and MPI = 0.1, the Keynesian multiplier equals


A) 1.
B) 1.25.
C) 2.5.
D) 5.
E) 10.

Correct Answer:

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