If the multiplier is 4 and a change in government spending leads to a cumulative $500 million decrease in aggregate spending, then initially: A) Government spending decreased by $125 million B)...


If the multiplier is 4 and a change in government spending leads to a cumulative $500 million decrease in aggregate spending, then initially:


A) Government spending decreased by $125 million


B) Government spending decreased by $500 million


C) Taxes decreased by $100 million


D) Government spending decreased by $100 million



Jun 09, 2022
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