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MMLU / A change in government spending will have a greater short run impact on real…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A change in government spending will have a greater short run impact on real output when

choices

  1. the marginal propensity to consume is lower.
  2. the velocity of money is lower.
  3. the velocity of money is higher.
  4. the marginal propensity to consume is larger.

subject

high_school_macroeconomics

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Source and history

Official source

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