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Given a simple Keynesian spending multiplier of 2, how will GDP (Y) change when business investment increases by $15 billion, exports increase by $5 billion,
Given a simple Keynesian spending multiplier of 2, how will GDP (Y) change when business investment increases by $15 billion, exports increase by $5 billion, and government spending drops by $10 billion?
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Y remains unchanged.
Y decreases by $10 billion.
Y decreases by $20 billion.
Y increases by $20 billion.
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