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  3. Study Set
    Principles of Macroeconomics Study Set 11
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    Exam 9: The Government and Fiscal Policy
  5. Question
    Suppose That the MPS =
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Suppose That the MPS =

Question 1

Question 1

Essay

Suppose that the MPS = .2 and the government is interested in raising the level of output in the economy by $100 billion. Calculate how much the government would have to spend to achieve this objective.

Correct Answer:

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