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If, Using the Keynesian Approach, Injections into the Spending Stream

Question 160

Multiple Choice

If, using the Keynesian approach, injections into the spending stream were $1.2 trillion and leakages from the spending stream were $1.4 trillion:


A) total output would be $1.2 trillion.
B) total output would be $2.6 trillion.
C) business inventories would increase by $0.2 trillion.
D) business inventories would decrease by $0.2 trillion.

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