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Assume That the Parameters of a Particular Economy Are as Follows

Question 157

Multiple Choice

Assume that the parameters of a particular economy are as follows: MPC = 0.6,MPM = 0.1.What is the value of the multiplier?

A) 0.4.
B) 0.5.
C) 1.67.
D) 2.
E) 2.5.

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