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In the Short Run,the Impact of a $50 Billion Spending

Question 11

Multiple Choice

In the short run,the impact of a $50 billion spending package on GDP will be


A) greater than $50 billion because of the multiplier effect
B) less than $50 billion because of the tax code
C) greater than $50 billion because of the tax code
D) exactly $50 billion
E) greater than $50 billion because of crowding out.

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