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    Macroeconomics for Today
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    Exam 9: The Keynesian Model in Action
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    If the MPS =
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If the MPS =

Question 161

Question 161

Multiple Choice

If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:


A) $25.
B) $75.
C) $150.
D) $125.
E) $100.

Correct Answer:

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