Multiple Choice
Assume the AS curve is upward-sloping.If the multiplier is 4 and the government increases transfer payments by $10 billion,then real output will increase by
A) Less than $30 billion.
B) Exactly $30 billion.
C) Exactly $40 billion.
D) Exactly $50 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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