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Suppose government spending increases by $10 billion. Why would output increase by more than $10 billion? a. As aggregate demand begins expanding, the Bank of
Suppose government spending increases by $10 billion. Why would output increase by more than $10 billion? a. As aggregate demand begins expanding, the Bank of Canada will likely inject more money into the economy. b. As aggregate demand begins expanding, the government is likely to increase taxes. c. As aggregate demand begins expanding, income and consumption expand. d. As aggregate demand begins expanding, interest rates will fall
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