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Suppose the economy's multiplier is 5. Other things equal, a $15 billion decrease in government expenditures on national defense will cause equilibrium GDP to decrease
Suppose the economy's multiplier is 5. Other things equal, a $15 billiondecreasein government expenditures on national defense will cause equilibrium GDP to
- decrease by $75 billion.
- decrease by $150 billion.
- increase by $75 billion.
- decrease by $15 billion.
- remain unchanged.
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