If the Multiplier Is 6 and If There Is No

question 110

Multiple Choice

If the multiplier is 6 and if there is no crowding-out effect,then a $60 billion increase in government expenditures causes aggregate demand to

• A)increase by $250 billion.
• B)increase by $333 billion.
• C)increase by $360 billion.
• D)None of the above are correct.

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