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In Comparing the Outcomes of Increasing Government Spending to Reduce

Question 60

Multiple Choice

In comparing the outcomes of increasing government spending to reduce Keynesian unemployment as opposed to increasing the money supply, the increase in government spending
Results in


A) higher consumption and higher output.
B) lowers consumption and the real wage rate.
C) lower consumption and higher output.
D) higher consumption and lower output.
E) lower consumption and lower output.

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