In a Simple Macro Model with Government and Demand- Determined

question 22

Multiple Choice

In a simple macro model with government and demand- determined output, to raise equilibrium national income by $100 billion, G must be

• A)raised by $100 billion divided by the simple multiplier.
• B)raised by $100 billion times the simple multiplier.
• C)raised by $100 billion.
• D)lowered by $100 billion divided by the simple multiplier.
• E)lowered by $100 billion times the simple multiplier.

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