Which of the following scenarios leads to the largest change in output and income?
A) The government spends $2 million fixing a bridge and the public spends 75% of additional income earned.
B) The government spends $5 million fixing a bridge and the public spends 50% of additional income earned.
C) The government spends $1 million fixing a bridge and the public spends 80% of additional income earned.
D) The government spends $1.5 million fixing a bridge and the public spends 90% of additional income earned.
Correct Answer:
Verified
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