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If the MPC in an economy is 0.8, a $1 billion increase in government spending will ultimately increase consumption by Multiple Choice $4 billion. $1

If the MPC in an economy is 0.8, a $1 billion increase in government spending will ultimately increase consumption by

Multiple Choice

  • $4 billion.
  • $1 billion.
  • $0.8 billion.
  • $5 billion.

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