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Marginal Propensity toCconsume Assignment | Custom Assignment Help

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Assume that the marginal propensity to consume is equal to 0.85. If the government increased spending by $Z, and the real GDP increased by $5000, what is the value of Z? A)$750 B)$1000 C)$900 D)$800 Calculate the multiplier if the marginal propensity to consume (MPC) is equal to 0.99. A)10000 B)1000 C)500 D)100   Suppose the government increases spending by $100, as a result real …

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