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If the Desired Fiscal Restraint Is $80 Billion and the AD

Question 11

Multiple Choice

If the desired fiscal restraint is $80 billion and the AD excess is $160 billion,we can conclude that

A) The MPS is 0.50.
B) The multiplier is 0.50.
C) There is a recessionary gap.
D) The MPC is 2.0.

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