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Clement Clement
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5 years ago

Question 1.

If the government spending multiplier is 10 and government purchases decrease by $20 billion, output will decrease by



▸ $2 billion.

▸ $20 billion.

▸ $40 billion.

▸ $200 billion.

Question 2.

If the government spending multiplier is 6 and government spending increases by $30 billion, output will ________ by $________ billion.



▸ increase; 180

▸ decrease; 180

▸ increase; 5

▸ decrease; 5
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
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MikaelDevostMikaelDevost
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5 years ago
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