Exhibit 9-5 Keynesian Aggregate Expenditures Model Where the MPC Is

question 10

Multiple Choice

Exhibit 9-5 Keynesian aggregate expenditures model where the MPC is 0.75
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To eliminate the GDP gap shown in Exhibit 9-5, the government should cut its spending by:

• A) $0.5 trillion.
• B) $1 trillion.
• C) $1.5 trillion.
• D) $2 trillion.