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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 There Is No Government or Foreign Sector, If the Multiplier
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Assuming There Is No Government or Foreign Sector, If the Multiplier

Question 27

Question 27

Multiple Choice

Assuming there is no government or foreign sector, if the multiplier is 5, the MPC is


A) 0.4.
B) 0.5.
C) 0.8.
D) 5.

Correct Answer:

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