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The President Wishes to Increase Spending for Education by $4

Question 136

Multiple Choice

The president wishes to increase spending for education by $4 billion but also maintain a balanced budget.Therefore, taxes will also be increased by $4 billion.What will happen to GDP?


A) It will increase.
B) It will remain the same.
C) It will decrease.
D) It's impossible to know without the multiplier.

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