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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 ______.

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there is no crowding out

$30 billion.

$45 billion.

$60 billion.

$25 billion.

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