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If the Expenditure Multiplier Is 3

Question 88

Multiple Choice

If the expenditure multiplier is 3.5 and investment spending increases by $2,000 billion,what will be the change in GDP?

A) $2,000 billion
B) $5,000 billion
C) $571.4 billion
D) $3,500 billion
E) $7,000 billion

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