If the Multiplier Is 4, a $15 Billion Increase in Government

question 143

Multiple Choice

If the multiplier is 4, a $15 billion increase in government expenditures will shift the AD curve:

• A)to the right by $15 billion.
• B)to the left by $15 billion.
• C)to the right by $60 billion.
• D)to the left by $60 billion.

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