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If a $500 Billion Increase in Investment Spending Increases Income

Question 129

Multiple Choice

If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by


A) $2,500 billion.
B) $3,000 billion.
C) $4,000 billion.
D) $5,000 billion.

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