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Other Things Equal, If $100 Billion of Government Purchases (G)

Question 45

Multiple Choice

Other things equal, if $100 billion of government purchases (G) is added to private spending (C + Ig + Xn) , GDP will

A) increase by $100 billion.
B) increase by less than $100 billion.
C) increase by more than $100 billion.
D) fall by $100 billion.

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