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Assume that a $2000 billion increase in investment spending creates $2000 billion of new income in the first round of the multiplier process and 1800
Assume that a $2000 billion increase in investment spending creates $2000 billion of new income in thefirstround of the multiplier process and 1800 billion in thesecondround. TheMultiplierin this economy is
A.5.0
B.1.11
C.0.8
D.10
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