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    Principles of Macroeconomics Study Set 12
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    Exam 8: Aggregate Expenditure and Equilibrium Output
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    Assuming No Government or Foreign Sector, If the MPC Is
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Assuming No Government or Foreign Sector, If the MPC Is

Question 106

Question 106

Multiple Choice

Assuming no government or foreign sector, if the MPC is 0.5, the multiplier is


A) 0.2.
B) 0.5.
C) 2.
D) 5.

Correct Answer:

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