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If M^d = 2,600 - 200r,the MPC =

Question 9

Multiple Choice

If M^d = 2,600 - 200r,the MPC = .75,G=100,and T = 100.If the central bank wants the interest rate to be r=2,then the money supply must be

A) 5.
B) 400
C) 300
D) 3,000
E) not enough information was given.

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