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    Exam 30: IS-MP Analysis: Interest Rates and Output
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    If Government Spending Rises by $40 Billion and GDP Rises
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If Government Spending Rises by $40 Billion and GDP Rises

Question 84

Question 84

Multiple Choice

If government spending rises by $40 billion and GDP rises by $80 billion, then the multiplier in the economy is:


A) 2.
B) 1.
C) 0.5.
D) 8.

Correct Answer:

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