Exhibit 9-6 Keynesian Aggregate Expenditure Model When the MPC Is

question 3

Multiple Choice

Exhibit 9-6 Keynesian aggregate expenditure model when the MPC is 2/3
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In Exhibit 9-6, the spending multiplier for this economy is equal to:

• A) 1 2/3.
• B) 2 1/2.
• C) 3.
• D) 5.