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The MPC = 0.9. A 100b decrease in Government Spending resulted in a 1,000 decrease in GDP. This result indicates that None of these answers
The MPC = 0.9. A 100b decrease in Government Spending resulted in a 1,000 decrease in GDP. This result indicates that None of these answers is correct there was no deflation and GDP drop by the full multiplier amount inflation increased the value of the multiplier inflation reduced the value of the multiplier deflation reduced the value of the multiplier deflation increased the value of the multiplier
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