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Which of the Following Would Increase the Size of the Government

Question 132

Multiple Choice

Which of the following would increase the size of the government purchases multiplier?


A) an increase in the tax rate
B) an increase in the quantity of imports purchased by households from an increase in income
C) a decrease in the amount of consumption spending by households from an increase in income
D) a decrease in the amount saved by households from an increase in income
E) an increase in the importance of government spending to the economy

Correct Answer:

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