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    Economics Study Set 11
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    Exam 31: The Aggregate Expenditures Model
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    If the MPC in an Economy Is 0
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If the MPC in an Economy Is 0

Question 106

Question 106

Multiple Choice

If the MPC in an economy is 0.9, a $1 billion increase in government spending will ultimately increase consumption by


A) $1 billion.
B) $0.9 billion.
C) $10 billion.
D) $9 billion.

Correct Answer:

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