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The Fluctuations in the Income Level That Result from Changes

Question 30

Multiple Choice

The fluctuations in the income level that result from changes in investment spending


A) tend to be larger with a larger mpc
B) tend to be larger if the income tax rate (t) is larger
C) tend to be larger with a larger mps
D) tend to be smaller if the apc is smaller
E) depend only on the magnitude of the changes in investment spending but not on the size of the mpc

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