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Author Question: Assuming no government or foreign sector, if the MPCis 0.9, the multiplier is (Read 248 times)

colton

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Question 1

Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.













Refer to Figure 23.11. Equilibrium aggregate output will increase to $250 million if the


MPC increases to 0.8.
MPS increases to 0.8.
◦ multiplier increases to 8.
◦ All of these.

Question 2

Assuming no government or foreign sector, if the 
MPC is 0.9, the multiplier is


◦ 0.1.
◦ 5.
◦ 9.
◦ 10.


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Marked as best answer by colton on Apr 19, 2019

elyse44

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colton

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elyse44

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