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Suppose the marginal propensity to consume equals .6 (i.e., c1= .6). Given this information, which of the following events will cause the largest reduction in
Suppose the marginal propensity to consume equals .6 (i.e., c1= .6). Given this information, which
of the following events will cause the largest reduction in output?
(a). G decreases by 300
(b). I decreases by 250
(c). T increases by 300
Group of answer choices
G decreases by 300
both (a) and (b)
I decreases by 250
T increases by 300
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