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    Foundations of Macroeconomics Study Set 1
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    Exam 14: Aggregate Expenditure Multiplier
  5. Question
    The Expenditure Multiplier Equals 5 and There Is a $3
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The Expenditure Multiplier Equals 5 and There Is a $3

Question 85

Question 85

Multiple Choice

The expenditure multiplier equals 5 and there is a $3 million increase in investment.Equilibrium expenditure


A) decreases by $15 million.
B) increases by $3 million.
C) increases by $5 million.
D) increases by $15 million.
E) increases by $0.60 million.

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