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    Business
  3. Study Set
    Macroeconomics
  4. Exam
    Exam 10: Investment, Net Exports, and Interest Rates: The Is Curve
  5. Question
    If the MPE =
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If the MPE =

Question 54

Question 54

Multiple Choice

If the MPE = .6, Ir = $200 billion If the MPE = .6, I<sub>r</sub> = $200 billion    billion, a one percentage point change in r will change the level of aggregate demand by A)  $270 billion. B)  -$625 billion. C)  $625 billion. D)  -$270 billion. billion, a one percentage point change in r will change the level of aggregate demand by


A) $270 billion.
B) -$625 billion.
C) $625 billion.
D) -$270 billion.

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