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Deriving the Multiplier Algebraically
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Deriving the Multiplier Algebraically
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16. Deriving the Aggregate Expenditures Model / Deriving the Multiplier Algebraically / Problem 9
Problem 9
If the marginal propensity to consume (MPC) is 0.8, what is the value of the multiplier?
A
4
B
0.2
C
1.25
D
5
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