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If the mpc = 0.85 and government increases spending by 250m on its military capability, then aggregate demand will A) rise by 212.5m. B) rise

If the mpc = 0.85 and government increases spending by 250m on its military capability, then aggregate demand will

A) rise by 212.5m.

B) rise by 250m.

C) remain the same.

D) rise by 37.5m.

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