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Suppose the multiplier is 3 and the government increases its purchases by $25 billion. Suppose that GDP increases by $50 billion. Then crowding out effect
Suppose the multiplier is 3 and the government increases its purchases by $25 billion. Suppose that GDP increases by $50 billion. Then crowding out effect is ______.
Group of answer choices
there is no crowding out
$30 billion.
$45 billion.
$60 billion.
$25 billion.
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