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The multiplier effect of fiscal policy predicts that an increase in government spending of $100 billion will increase to
Posted: Thu May 26, 2022 7:43 am
by answerhappygod
- The Multiplier Effect Of Fiscal Policy Predicts That An Increase In Government Spending Of 100 Billion Will Increase To 1 (16.08 KiB) Viewed 20 times
The multiplier effect of fiscal policy predicts that an increase in government spending of $100 billion will increase total income by $500.00 billion if the marginal propensity to consume is 0.80. If we account for crowding-out, then the increase in aggregate demand will be Choose one: O A. less than $500.00 billion. O B. exactly $500.00 billion. O C. more than $500.00 billion.