Multiple Choice
Suppose an initial increase in government expenditure increases output by $50,000. If the size of the multiplier is 2.5, the size of the initial increase in government expenditure was _____
A) $25,000.
B) $20,000.
C) $12,500.
D) $50,000.
E) $0.
Correct Answer:
Verified
Correct Answer:
Verified
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