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During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a program to help stabilize
During a pandemic, an economy goes into a recession due to a decrease in aggregate demand. Assume the government creates a program to help stabilize the economy by increasing expenditures by $700 billion. How much spending would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 in the economy
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