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If the Government Wishes to Decrease GDP by $2,000b, and the MPC

Question 37

Multiple Choice

If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:

A) increase its spending by $1,200b.
B) decrease its spending by $1,200b.
C) increase its spending by $800b.
D) decrease its spending by $800b.

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