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Multiplier Effect Assignment | Homework For You

Author:
December 11th, 2019

Assume there is a multiplier effect, some crowding out and no other effects. An increase in government expenditures changes aggregate demand more,

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  1. the smaller the MPC and the stronger the influence of income on money demand.
  2. the smaller the MPC and the weaker the influence of income on money demand.
  3. the larger the MPC and the stronger the influence of income on money demand.
  4. the larger the MPC and the weaker the influence of income on money demand.
  5. None of the above. Get Economics homework help today

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