Multiple Choice
Some economists argue that the spending multiplier is actually less than 1.If the spending multiplier is 0.8,then a $200 billion increase in government spending will cause private sector spending to
A) rise by $160 billion.
B) rise by $40 billion.
C) fall by $40 billion.
D) fall by $160 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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