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Suppose the economy's multiplier is 5. Other things equal, a $5 billion decrease in government expenditures on national defense will cause equilibrium GDP to a)decrease
Suppose the economy's multiplier is 5. Other things equal, a $5 billiondecreasein government expenditures on national defense will cause equilibrium GDP to
a)decrease by $25 billion.
b)decrease by $50 billion.
c)increase by $25 billion.
d)decrease by $5 billion.
e)remain unchanged.
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