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Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to

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Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by a. $100 billion b. $90 billion O c. $1 billion O d. $10 billion Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 5%. If the Fed buys $10 million worth of government securities from the public, the change in the money supply will be Select one: O a. $200 million O b. $100 million O c. $50 million O d. $110 million

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