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    Exam 5: Keynesian System I: the Role of Aggregate Demand
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    If the Consumption Function Is C = 120 +_
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If the Consumption Function Is C = 120 +_

Question 60

Question 60

Multiple Choice

If the consumption function is C = 120 +_.8(Y-T) in the basic Keynesian model,then in the government spending multiplier is:


A) 5.
B) 4.
C) 1.25.
D) .8

Correct Answer:

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