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According to Our Model,increasing G During a Recession,as the CEAP

Question 30

Multiple Choice

According to our model,increasing G during a recession,as the CEAP did,


A) makes the economy worse off, since the equilibrium allocation of resources is Pareto optimal
B) will help the economy recover and increase economic welfare
C) will increase consumption spending by consumers according to the multiplier effect
D) has no effect
E) had a multiplier much greater than one

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