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In the Keynesian-cross model, if the MPC equals 0.75 then a $2billion increase in government spending increases the equilibriumlevel of income by __________. A) $1
In the Keynesian-cross model, if the MPC equals 0.75 then a $2billion increase in government spending increases the equilibriumlevel of income by __________.
A) $1 billion.
B) $3 billion.
C) $4 billion.
D) $2 billion.
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