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Assume a Multiplier Effect,some Crowding Out and No Accelerator Effect

Question 152

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Assume a multiplier effect,some crowding out and no accelerator effect An increase in government expenditures changes aggregate demand more


A) the smaller the MPC and the farther an increase in income shifts money demand.
B) the smaller the MPC and the less an increase in income shifts money demand.
C) the larger the MPC and the farther an increase in income shifts money demand.
D) the larger the MPC and the less an increase in income shifts money demand.

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