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    Principles of Macroeconomics
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    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
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    If the MPC = 0
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If the MPC = 0

Question 17

Question 17

Multiple Choice

If the MPC = 0.8, what is the government purchases multiplier?


A) 0.20
B) 0.50
C) 2
D) 5

Correct Answer:

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