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    Exam 10: Fiscal Policy
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    If the MPC Is 0
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If the MPC Is 0

Question 109

Question 109

Multiple Choice

If the MPC is 0.8,what decrease in government purchases would be called for to achieve a $50 billion decrease in AD?


A) $10 billion
B) $40 billion
C) $50 billion
D) $62.5 billion

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