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    Macroeconomics Study Set 27
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    Exam 13: Fiscal Policy Appendix Taxes and the Multiplier
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    If Policy Makers Want to Increase Real GDP by $100
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If Policy Makers Want to Increase Real GDP by $100

Question 259

Question 259

True/False

If policy makers want to increase real GDP by $100 billion and the marginal propensity to consume is 0.75, they should increase government purchases of goods and services by $75 billion.

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