If National Output Is Fixed and There Is a 10

question 31

Multiple Choice

If national output is fixed and there is a 10 percent increase in total spending,the price level will

• A) fall by 10 percent.
• B) remain constant.
• C) rise by 10 percent.
• D) rise by 10 percent times the multiplier.
• E) rise by 10 percent times the dollar value of output.

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