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Assume that the mpc is 0.9. Assuming only the multiplier effect matters, an increase in government purchases of $200 billion will increase the equilibrium output
Assume that the mpc is 0.9. Assuming only the multiplier effect matters, an increase in government purchases of $200 billion will increase the equilibrium output by
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
