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Suppose the Government Embarks on an Infrastructure Program,spending $8 Billion

Question 91

Multiple Choice

Suppose the government embarks on an infrastructure program,spending $8 billion on the construction of new roads and bridges.What is the size of the multiplier if the AS curve is vertical?


A) 0
B) greater than 1
C) less than 1
D) infinity
E) insufficient information to solve

Correct Answer:

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