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What Impact Would You Expect an Increase of $63 Billion

Question 34

Multiple Choice

What impact would you expect an increase of $63 billion in federal government spending to have on the economy?


A) consumer spending would fall and investment spending would rise.
B) net exports would rise and consumer spending would rise.
C) consumer spending would fall and investment spending would fall.
D) savings would rise and taxation would fall.
E) consumer spending would rise and potential GDP would rise.

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