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    Exam 15: Fiscal Policy
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    An Increase in Government Spending by $100 Would, If the MPC
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An Increase in Government Spending by $100 Would, If the MPC

Question 197

Question 197

Multiple Choice

An increase in government spending by $100 would, if the MPC = 0.90, result in an increase in real GDP by:


A) $1,000.
B) $9,000.
C) $900.
D) $190.
E) inadequate information is given.

Correct Answer:

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