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    Principles of Macroeconomics Study Set 12
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    Exam 15: Household and Firm Behavior in the Macroeconomy: a Further Look
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    If It Becomes More Expensive for Firms to Hold Excess
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If It Becomes More Expensive for Firms to Hold Excess

Question 206

Question 206

Multiple Choice

If it becomes more expensive for firms to hold excess capital and labor, the multiplier will


A) decrease.
B) remain unchanged.
C) increase.
D) either increase or decrease depending on the value of the MPC.

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