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If the MPC Were to Increase from 0

Question 61

Multiple Choice

If the MPC were to increase from 0.75 to 0.8, then the spending multiplier would:

A) increase from 4 to 5.
B) decrease from 5 to 4.
C) increase from 0.20 to 0.25.
D) decrease from 1.25 to 1.20.

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