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Suppose an Initial Increase in Government Expenditure Increases Output by $50,000.If

Question 74

Multiple Choice

Suppose an initial increase in government expenditure increases output by $50,000.If the size of the multiplier is 2.5,the size of the initial increase in government expenditure was:


A) $25,000.
B) $20,000.
C) $12,5000.
D) $1250.
E) $30,000.

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