If the Desired Fiscal Stimulus Is $20 Billion and the Desired

question 33

Multiple Choice

If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion,we can conclude that

• A)The MPS is 0.60.
• B)The multiplier is 2.0.
• C)There is an inflationary gap.
• D)The MPC is 0.60.

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