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    Economics for Today Study Set 6
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    Exam 19: The Keynesian Model in Action
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    If the MPC Equals 0.80 Then
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If the MPC Equals 0.80 Then

Question 12

Question 12

Multiple Choice

If the MPC equals 0.80 then:


A) the MPS equals 1.20.
B) the multiplier equals 0.20.
C) the multiplier equals 1 divided by 0.80.
D) the multiplier equals 5.

Correct Answer:

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