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    Exam 12: Fiscal Policy
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    If the Multiplier Is 2
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If the Multiplier Is 2

Question 97

Question 97

Multiple Choice

If the multiplier is 2.5 and defense expenditures decrease by $10 million,aggregate demand decreases by a total of:


A) $5 million.
B) $10 million.
C) $25 million.
D) $100 million.

Correct Answer:

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