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If the Export Multiplier in an Economy Is Known to Be

Question 82

Multiple Choice

If the export multiplier in an economy is known to be 5, then a $20 billion increase in government spending will:


A) increase GDP by $20 billion.
B) have no effect on GDP.
C) increase GDP by any amount, since we do not know the government expenditure multiplier.
D) increase GDP by $100 billion.

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