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    Exam 19: The Keynesian Model in Action
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    If MPC = 0
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If MPC = 0

Question 56

Question 56

Multiple Choice

If MPC = 0.80, how much should government spending change to increase real GDP by $500?


A) − 100.
B) +80.
C) − 80.
D) +100.

Correct Answer:

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