An $18 billion increase in spending creates $18 billion of new income in the first round of the multiplier process and $13.5 billion in the second round.The multiplier in the economy is
A)2.
B)3.
C)4.
D)5.

Question

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The Answer of An $18 billion increase in spending creates $18 billion of new income in the first round of the multiplier process and $13.5 billion in the second round.The multiplier in the economy is
A)2.
B)3.
C)4.
D)5.

An $18 Billion Increase in Spending Creates $18 Billion of New