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This question was created from Econ_1A_Exam_3_Spring_2007


18. If the MPC = 0.80, the cumulative decrease in total spending resulting from an initial
$150 recessionary gap would be:
A) $150. B) $187.5. C) $500. D) $750.

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The correct answer is D) $750 Multiplier=1/(1-MPC)... View the full answer

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