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    Exam 26: The Algebra of Demand-Side Equilibrium
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    If the MPC Is Equal to
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If the MPC Is Equal to

Question 5

Question 5

Multiple Choice

If the MPC is equal to .75 and net taxes, government spending, investment and net exports are all autonomous, then the net tax multiplier is equal to:


A) 0
B) -1
C) -2
D) -3
E) -4

Correct Answer:

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