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Assume the Following. • the MPC Has a Value of 0.8

Question 41

Multiple Choice

Assume the following.
• The MPC has a value of 0.8.
• The relationship between the interest rate,r,and investment,I,is given by the
Equation,
,
Where b is a positive constant.
• Government purchases,G,are increased by $1,000.
In which of the following cases would there be no crowding out?


A) Assume the following. • The MPC has a value of 0.8. • The relationship between the interest rate,r,and investment,I,is given by the Equation, , Where b is a positive constant. • Government purchases,G,are increased by $1,000. In which of the following cases would there be no crowding out? A) B) C) D)
B) Assume the following. • The MPC has a value of 0.8. • The relationship between the interest rate,r,and investment,I,is given by the Equation, , Where b is a positive constant. • Government purchases,G,are increased by $1,000. In which of the following cases would there be no crowding out? A) B) C) D)
C) Assume the following. • The MPC has a value of 0.8. • The relationship between the interest rate,r,and investment,I,is given by the Equation, , Where b is a positive constant. • Government purchases,G,are increased by $1,000. In which of the following cases would there be no crowding out? A) B) C) D)
D) Assume the following. • The MPC has a value of 0.8. • The relationship between the interest rate,r,and investment,I,is given by the Equation, , Where b is a positive constant. • Government purchases,G,are increased by $1,000. In which of the following cases would there be no crowding out? A) B) C) D)

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