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

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 13SQ

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