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    Principles of Macroeconomics Study Set 12
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    Exam 19: Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates
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    If the MPM Is 0
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If the MPM Is 0

Question 191

Question 191

Multiple Choice

If the MPM is 0.1, then a $3,500 increase in income will


A) increase imports by $35,000.
B) increase imports by $350.
C) increase exports by $35,000.
D) increase exports by $350.

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