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Assume That Marginal Propensity to Consume Is 0

question 210

Multiple Choice

Assume that marginal propensity to consume is 0.8 and potential output is $800 billion. If the actual real GDP is $700 billion, _____ government spending by _____ would bring the economy to potential output.


Definitions:

Stay

A continuation or pause in the current state, position, or time.

Intimacy

The feeling of being close and emotionally connected to someone, often involving physical or emotional closeness.

Passion

Intense, driving, or overmastering feeling or conviction towards an activity, object, or concept.

Relationship

A connection, association, or involvement between two or more entities.

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