
According to our model,increasing G during a recession,as the CEAP did,
A) makes the economy worse off, since the equilibrium allocation of resources is Pareto optimal
B) will help the economy recover and increase economic welfare
C) will increase consumption spending by consumers according to the multiplier effect
D) has no effect
E) had a multiplier much greater than one
Correct Answer:
Verified
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Q39: An increase in government spending
A) increases consumption,
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