Government Spending Increases by $40 Billion and the Equilibrium Level

question 185

Multiple Choice

Government spending increases by $40 billion and the equilibrium level of output increases by $200 billion. The government spending multiplier

• A) is 4.
• B) is 5.
• C) is 6.
• D) cannot be determined from this information, because the MPC is not given.

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Centers for Medicare and Medicaid

U.S. federal agency that administers the nation's major healthcare programs including Medicare, Medicaid, and the Children's Health Insurance Program (CHIP).

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