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If the Spending Multiplier Is 3 and the Desired Amount

Question 37

Multiple Choice

If the spending multiplier is 3 and the desired amount of increase in real GDP is $90 million, then by how much would government spending have to increase?​


A) ​$270 million.
B) ​$90 million.
C) ​$30 million.
D) ​$0.

Correct Answer:

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