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    Macroeconomics Study Set 49
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    Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies
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    If the Multiplier Is 4, a $15 Billion Increase in Government
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If the Multiplier Is 4, a $15 Billion Increase in Government

Question 143

Question 143

Multiple Choice

If the multiplier is 4, a $15 billion increase in government expenditures will shift the AD curve:


A) to the right by $15 billion.
B) to the left by $15 billion.
C) to the right by $60 billion.
D) to the left by $60 billion.

Correct Answer:

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