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    Exam 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    If the MPC = 0
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If the MPC = 0

Question 96

Question 96

Multiple Choice

If the MPC = 0.85, then the government purchases multiplier is about


A) 1.18.
B) 3.33.
C) 6.67.
D) 8.5.

Correct Answer:

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