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During the Millennium Scare of 2000,Rufus Reduced His Monthly Spending

Question 59

Multiple Choice

During the millennium scare of 2000,Rufus reduced his monthly spending by $1,000 and buried his money in the backyard.If the marginal propensity to consume is 0.75,by how much did national income fall?


A) $1,000
B) 0
C) $4,000
D) It actually increased $4,000.

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