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If MPC = 2/3, a Decrease in Government Purchases of $10

Question 53

Multiple Choice

If MPC = 2/3, a decrease in government purchases of $10 billion will ultimately lead to:


A) ​a $30 billion increase in aggregate demand.
B) ​a $10 billion increase in aggregate demand.
C) ​a $10 billion decrease in aggregate demand.
D) ​a $30 billion decrease in aggregate demand.

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