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In a Simple Macro Model with Government and Demand- Determined

Question 22

Multiple Choice

In a simple macro model with government and demand- determined output, to raise equilibrium national income by $100 billion, G must be


A) raised by $100 billion divided by the simple multiplier.
B) raised by $100 billion times the simple multiplier.
C) raised by $100 billion.
D) lowered by $100 billion divided by the simple multiplier.
E) lowered by $100 billion times the simple multiplier.

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