Multiple Choice
According to our model, increasing G during a recession,
A) makes the economy worse off, since the equilibrium allocation of resources is Pareto-optimal.
B) will help the economy recover and increase economic welfare.
C) will increase consumption spending by consumers according to the multiplier effect.
D) has no effect.
E) had a multiplier much greater than one.
Correct Answer:

Verified
Correct Answer:
Verified
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