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Exhibit 9-5 Keynesian Aggregate-Expenditures Model Where the MPC Is 0

Question 185

Multiple Choice

Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75 Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75 To eliminate the GDP gap shown in Exhibit 9-5, the government should cut its spending by: A) $0.5 trillion. B) $1 trillion. C) $1.5 trillion. D) $2 trillion. To eliminate the GDP gap shown in Exhibit 9-5, the government should cut its spending by:


A) $0.5 trillion.
B) $1 trillion.
C) $1.5 trillion.
D) $2 trillion.

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