Answered: Suppose that when government spending…

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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Question

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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