Multiple Choice
The smaller the MPC:
A) the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption.
B) the greater 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) (a) and (c)
Correct Answer:
Verified
Correct Answer:
Verified
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