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Assume the government cuts taxes by $125 billion. If the MPC = 0.8, what is the maximum potential impact on real GDP according to the

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Assume the government cuts taxes by $125 billion. If the MPC = 0.8, what is the maximum potential impact on real GDP according to the simple Keynesian model? a. Real GDP increases by $500 billion b. Real GDP increases by $625 billion 2 :01 :1.0 Real GDP decreases by $500 billion d. ndiReal GDP decreases by $625 billion The (CD Isay) orgoni

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