Suppose that for a given economy, the MPC = 0.95 and government purchases fall by $40 billion. As a result, Real GDP would be expected to _________ by ________________. Group of answer choices rise; $38 billion rise; $800 billion fall; $38 billion fall; $80 billion fall; $800 billion
Suppose that for a given economy, the MPC = 0.95 and government purchases fall by $40 billion. As a result, Real GDP would be expected to _________ by ________________. Group of answer choices rise; $38 billion rise; $800 billion fall; $38 billion fall; $80 billion fall; $800 billion
Chapter8: The Keynesian Model
Section: Chapter Questions
Problem 7SQ
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Suppose that for a given economy, the MPC = 0.95 and government purchases fall by $40 billion. As a result, Real GDP would be expected to _________ by ________________. Group of answer choices rise; $38 billion rise; $800 billion fall; $38 billion fall; $80 billion fall; $800 billion
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