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Suppose the MPC = 0

question 172

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Suppose the MPC = 0.90 and there are no taxes or imports. What dos the multiplier equal? If the initial equilibrium aggregate expenditure is $12 trillion, what will be the effect on aggregate expenditure of a $100 billion increase in investment?


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A comprehensive process following a psychological study or experiment where participants are fully informed about the nature of the study, its design, and the results.

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