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9. If aggregate expenditures are less than current production, then inventories are and there is pressure on production to a. Decreasing, increase b. Increasing; increase

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9. If aggregate expenditures are less than current production, then inventories are and there is pressure on production to a. Decreasing, increase b. Increasing; increase c. Decreasing, decrease d. Increasing; decrease 10. Suppose a $600 billion increase in disposable income results in a $450 billion increase in consumption. What is the marginal propensity to consume? a. 0.67 b. 0.75 C. 0.80 d. 1.00 11. The Keynesian cross model is initially at an equilibrium when there is a $400 billion tax cut. If the marginal propensity to consume if 0.75, by how much could production increase? a. $400 billion b. $800 billion c. $1.2 trillion d. $1.6 trillion glish (United States) EFocus

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