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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    If the MPC = 4/5, Then the Government Purchases Multiplier
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If the MPC = 4/5, Then the Government Purchases Multiplier

Question 118

Question 118

Multiple Choice

If the MPC = 4/5, then the government purchases multiplier is


A) 5/4.
B) 4/5.
C) 5.
D) 20.

Correct Answer:

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