Multiple Choice
The greater the MPC:
A) the greater the fraction of an increase in AD due to an increase in government purchases that is consumption.
B) the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption.
C) the greater the change in government purchases required to achieve a given change in AD.
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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