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Consider a Simple Macro Model with a Constant Price Level

Question 110

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 0.8,the simple multiplier is


A) 0.
B) 0.8.
C) 1.25.
D) 5.0.
E) 8.0.

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