Question
If the multiplier is 5 and a change in fiscal policy leads to a $500 million decrease in total spending, we can conclude that:
If the multiplier is 5 and a change in fiscal policy leads to a $500 million decrease in total spending, we can conclude that: OA. Government spending decreased by $500 million. B. Taxes increased by $500 million. OC. Taxes decreased by $100 million. O D. Government spending decreased by $100 million.
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
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