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    Exam 10: Basic Macroeconomic Relationships
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    If a $50 Billion Decrease in Investment Spending Causes Income
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If a $50 Billion Decrease in Investment Spending Causes Income

Question 184

Question 184

Multiple Choice

If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round, the multiplier in the economy is


A) 2.
B) 3.33.
C) 5.
D) 10.

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