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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 MPS =
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If the MPS =

Question 14

Question 14

Multiple Choice

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


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

Correct Answer:

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