Because of a Recession in Japan, Net Exports from the United

question 53

Multiple Choice

Because of a recession in Japan, net exports from the United States decrease by $10 billion.If the MPC is 0.75, how much less spending will occur in the U.S.economy in the second "round" of spending?

• A)$17.5 billion
• B)$10 billion
• C)$7.5 billion
• D)$5.0 billion

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