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If the Multiplier Is 6 and If There Is No

Question 110

Multiple Choice

If the multiplier is 6 and if there is no crowding-out effect,then a $60 billion increase in government expenditures causes aggregate demand to

A) increase by $250 billion.
B) increase by $333 billion.
C) increase by $360 billion.
D) None of the above are correct.

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