Multiple Choice
The president wishes not only to increase spending for education by $4 billion but also to maintain a balanced budget.Therefore, taxes will also be increased by $4 billion.What will happen to GDP?
A) It will increase.
B) It will remain the same.
C) It will decrease.
D) It's impossible to know without the multiplier.
Correct Answer:
Verified
Correct Answer:
Verified
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