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Assume That GDP = $10,000 and the MPC = 0

Question 48

Multiple Choice

Assume that GDP = $10,000 and the MPC = 0.75. If policy makers want to increase GDP by 30 percent, by how much should they increase government spending?


A) $300
B) $750
C) $1,000
D) $3,000

Correct Answer:

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