Recall the Application About the Difficulty in Estimating the Size

Recall the Application about the difficulty in estimating the size of multipliers and the historical record of the size of multipliers to answer the following question(s) .
-According to this Application, based on the information found by economists Robert Barro and Charles Redlick on multipliers for defense spending, increases in government spending for defense

A) increased the economy, but by less than the amount of the government spending.
B) increased the economy by an average of 4 times the amount of the government spending.
C) increased the economy by more than 5 times the amount of the government spending.
D) actually decreased the size of the economy.

Correct Answer:

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