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    Macroeconomics Study Set 17
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    Exam 12: Aggregate Expenditure and Output in the Short Run
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    If the MPC Is 0
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If the MPC Is 0

Question 172

Question 172

Multiple Choice

If the MPC is 0.95,then a $10 million increase in disposable income will


A) increase consumption by $200 million.
B) increase consumption by $9.5 million.
C) decrease consumption by $105 million
D) increase consumption by $950 million.

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