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    Suppose the Government Expenditure Increases by $200 and the Simple
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Suppose the Government Expenditure Increases by $200 and the Simple

Question 132

Question 132

Multiple Choice

Suppose the government expenditure increases by $200 and the simple spending multiplier equals 5.The final increase in output will be:


A) $6000.
B) $500.
C) $200.
D) more than $200.
E) less than $200.

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