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If policy makers want to decrease real GDP by $100 billion and the marginal propensity to consume is 0.6, they should _____ government purchases of goods and services by _____.

a. decrease; $100 billion
b. decrease; $60 billion
c. decrease; $40 billion
d. increase; $100 billion

User Ninsau
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1 Answer

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I think it’s C . Decrease $40 billion
User Chibuike
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