If the Desired Fiscal Restraint Is $80 Billion and the AD

question 11

Multiple Choice

If the desired fiscal restraint is $80 billion and the AD excess is $160 billion,we can conclude that

• A)The MPS is 0.50.
• B)The multiplier is 0.50.
• C)There is a recessionary gap.
• D)The MPC is 2.0.

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