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"It Matters How the Government Spends Any Extra Dollars

Question 69

Multiple Choice

"It matters how the government spends any extra dollars." The economist who said this most likely believes that


A) a dollar spent on one government project could raise Real GDP more than a dollar spent on some alternative government project.
B) the AS curve is upward-sloping.
C) the tax multiplier is larger than the government spending multiplier.
D) government should increase in both size and scope.
E) none of the above

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