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  3. Study Set
    Principles of Economics Study Set 8
  4. Exam
    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    If the Marginal Propensity to Consume Is 4/5, Then a Decrease
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If the Marginal Propensity to Consume Is 4/5, Then a Decrease

Question 139

Question 139

True/False

If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion.

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