The Keynesian multiplier relies on the assumption that people are forward looking.
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Q172: Suppose that MPC = 0.5 and MPI
Q173: Which of the following is true about
Q174: An increase in the marginal propensity to
Q175: The permanent income model implies that
A)a permanent
Q176: Suppose that MPC = 0.7 and MPI
Q178: The forward-looking model predicts that the marginal
Q179: According to the permanent income model, the
Q180: According to the forward-looking model, consumption
A)reacts mostly
Q181: The forward-looking model implies that the Keynesian
Q182: In 2008, the government under the Bush
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