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Consider a Simple Macro Model with a Constant Price Level

Question 98

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is zero,the simple multiplier is


A) zero.
B) a positive number between zero and one.
C) one.
D) a positive number greater than one but less than infinity.
E) infinitely large.

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