If an Increase in Government Spending Had a Multiplier Expanded

question 45

Essay

If an increase in government spending had a multiplier expanded effect upon GDP of $200 billion and the deficit response index is .15, calculate the amount by which the deficit will rise.

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Definitions:

Port Of Charleston

A significant seaport in Charleston, South Carolina, with a rich history of trade, immigration, and military strategic importance in the United States.

Natural Rights

Rights that individuals are born with, which are not contingent upon laws, customs, or beliefs, often including the right to life, liberty, and property.

American Revolution

The period (1765-1783) during which thirteen of Britain's North American colonies successfully fought for their independence to become the United States of America.

Thomas Jefferson

The third President of the United States (1801-1809), principal author of the Declaration of Independence, and a founder of the Democratic-Republican Party.