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The Government Buys a Bridge

Question 45

Multiple Choice

The government buys a bridge.The owner of the company that builds the bridge pays her workers.The workers increase their spending.Firms that the workers buy goods from increase their output.This type of effect on spending illustrates


A) the multiplier effect.
B) the crowding-out effect.
C) the Fisher effect.
D) None of the above is correct.

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