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  3. Study Set
    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    Suppose an Economy Has No Income Taxes or Imports
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Suppose an Economy Has No Income Taxes or Imports

Question 132

Question 132

Essay

Suppose an economy has no income taxes or imports.If the MPC is 0.75, what does the expenditure multiplier equal?

Correct Answer:

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The expenditure mult...

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