Multiple Choice
Suppose the government finds it can increase equilibrium real GDP by $45 billion by increasing government purchases by $18 billion.On the basis of this information we can say that the:
A) MPS in this economy is .4.
B) MPC in this economy is .4.
C) MPC in this economy is .3
D) multiplier is 3.
Correct Answer:
Verified
Correct Answer:
Verified
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