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Keynesian Economics math question: Assume the national MPC = .80 and the national average tax rate = .25. Now let's assume that Consumption Spending =

Keynesian Economics math question: Assume the national MPC = .80 and the national average tax rate = .25. Now let's assume that Consumption Spending = $200 billion, Investment Spending = $150 billion, Government Spending = $100, and that this imaginary nation had no imports or exports. Conclusion: Then the national Aggregate Demand will equal $ 1.125 trillion. 1 _____________________ X (C I G /- International Trade) = Aggregate Demand 1 - MPC X (1 - tax rate) True or False

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