Assuming that the government can act immediately before the multiplier takes effect, then to offset an increase in investment by $1 billion, government purchases must be:

Name: Assuming that the government can act immediately before the multiplier takes effect, then to offset an increase in investment by $1 billion, government purchases must be:
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Question

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A $1 billion increase in investment can be completely offset if government purchases (another type of expenditures) are decreased by $1 billion.

Assuming That the Government Can Act Immediately Before the Multiplier