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Exhibit 17-3 -According to Exhibit 17-3,if We Assume the MPC Is 0.9,then

Question 27

Multiple Choice

Exhibit 17-3
Exhibit 17-3 -According to Exhibit 17-3,if we assume the MPC is 0.9,then a shift in the AD curve from AD₀ to AD₁ would require an increase in government spending of: A) $50 billion. B) $10 billion. C) $5 billion. D) greater than $50 billion to allow for inflation. E) less than $10 billion to allow for inflation.
-According to Exhibit 17-3,if we assume the MPC is 0.9,then a shift in the AD curve from AD₀ to AD₁ would require an increase in government spending of:


A) $50 billion.
B) $10 billion.
C) $5 billion.
D) greater than $50 billion to allow for inflation.
E) less than $10 billion to allow for inflation.

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