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The Multiplier Is 5 And,as a Result of a Change

Question 177

Multiple Choice

The multiplier is 5 and,as a result of a change in expenditure,equilibrium expenditure and real GDP change by $200 billion.What was the initial change in autonomous expenditure?


A) $20 billion
B) $40 billion
C) $200 billion
D) $1,000 billion
E) $50 billion

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