Multiple Choice
If the MPC is 0.9, and the government cuts spending by $200 billion, the overall effect on GDP will be:
A) a decrease of $2,000 billion.
B) an increase of $2,000 billion.
C) a decrease of $1,800 billion.
D) an increase of $180 billion.
Correct Answer:

Verified
Correct Answer:
Verified
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