Multiple Choice
If government purchases increased by $30 billion, investment spending decreased by $20 billion, and 80 percent of additional income was spent on new goods and services, total output would:
A) increase by $8.0 billion.
B) increase by $10 billion.
C) increase by $20 billion.
D) increase by $50 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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