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If the Government Wishes to Increase GDP by $1,200b, and the MPC

Question 39

Multiple Choice

If the government wishes to increase GDP by $1,200b, and the MPC is 0.8, it should:

A) increase its spending by $240b.
B) decrease its spending by $240b.
C) increase its spending by $960b.
D) decrease its spending by $960b.

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