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    Macroeconomics for Today
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    Exam 9: The Keynesian Model in Action
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    If MPC = 0
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If MPC = 0

Question 192

Question 192

Multiple Choice

If MPC = 0.8 and the economy is in equilibrium $500 below full-employment equilibrium, how much should government spending change to achieve full employment?


A) - 100.
B) +80.
C) - 80.
D) +500.
E) +100.

Correct Answer:

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