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Money Banking and the Financial System
Quiz 18: Monetary Theory Ii: the Is-Mp Model
Q 27
What is the multiplier? If MPC = 0.75,what is the value of the multiplier in the simple model of the economy?
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Q 26
What is the multiplier effect?
Q 28
Use the following data to calculate equilibrium real GDP: C = 0.75Y,I = $2 trillion,G = $1 trillion and NX = -$0.5 trillion.
Q 29
Explain how an increase in real interest rates affects the components of aggregate expenditure.
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