Multiple Choice
Suppose government finds it can increase the equilibrium real GDP $45 billion by increasing government purchases by $18 billion.On the basis of this information,we can say that the:
A) MPS in this economy is .4.
B) MPC in this economy is .4.
C) multiplier does not apply in this economy.
D) multiplier is 3.
Correct Answer:
Verified
Correct Answer:
Verified
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