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Assume the economy is in a recession, and a stimulus package of $800 billion is passed by the federal government. The administration predicts that this

  • Assume the economy is in a recession, and a stimulus package of $800 billion is passed by the federal government. The administration predicts that this measure will provide a $3,200 billion boost to GDP this year because consumers will spend their extra cash on HD televisions, cars, and other items. For this amount of stimulus, what is the established value of MPC used in this forecast?

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