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Which of the Following Scenarios Leads to the Largest Change

Question 56

Multiple Choice

Which of the following scenarios leads to the largest change in output and income?


A) The government spends $2 million fixing a bridge and the public spends 75% of additional income earned.
B) The government spends $5 million fixing a bridge and the public spends 50% of additional income earned.
C) The government spends $1 million fixing a bridge and the public spends 80% of additional income earned.
D) The government spends $1.5 million fixing a bridge and the public spends 90% of additional income earned.

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