Suppose that when government spending increased by $200, total spending in the economy increased by $600. What is the government spending multiplier in this case? a. 3 b. $400 c. $800 d. 1/3
Suppose that when government spending increased by $200, total spending in the economy increased by $600. What is the government spending multiplier in this case? a. 3 b. $400 c. $800 d. 1/3
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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Suppose that when government spending increased by $200, total spending in the economy increased by $600. What is the government spending multiplier in this case?
a. 3
b. $400
c. $800
d. 1/3
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