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a) Define the Keynesian Theory of Liquidity Preference. b) Suppose economists observe that an increase in government spending of 700 crore taka that raises the

a) Define the Keynesian Theory of Liquidity Preference.

b) Suppose economists observe that an increase in government spending of 700 crore taka that raises the total demand for goods and services by 900 crore taka. If economists ignore the possibility of crowding out effect, calculate the marginal propensity to consume (MPC)?

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