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If Government Expenditure on Goods and Services Increases by $10

Question 128

Multiple Choice

If government expenditure on goods and services increases by $10 billion,then aggregate demand


A) increases by $10 billion.
B) increases by $10 billion multiplied by the government expenditure multiplier.
C) increases by $10 billion multiplied by the tax multiplier.
D) decreases by $10 billion.
E) decreases by $10 billion multiplied by the government expenditure multiplier.

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