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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    If the MPC Is 0
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If the MPC Is 0

Question 116

Question 116

Multiple Choice

If the MPC is 0.50 and there are no crowding-out or accelerator effects, then an initial increase in aggregate demand of $205 billion will eventually shift the aggregate demand curve to the right by


A) $216 billion.
B) $150 billion.
C) $410 billion.
D) $480 billion.

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