ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The economy has a recessionary gap of $100 billion and a multiplier effect estimated to be 4. How much should the government increase spending by to eliminate the gap?
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$25 Billion
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$50 Billion
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$100 Billion
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They should decrease, not increase spending to eliminate the gap
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Explanation:
There is 1 question to complete.