If the multiplier is 4, government spending rises by $200, and taxes increase by $200, equilibrium income will: A. RISE BY $200. B. RISE BY MORE THAN $200. C. FALL BY $200. D. FALL BY LESS THAN $200. E. NOT CHANGE.

If the multiplier is 4, government spending rises by $200, and taxes increase by $200, equilibrium income will: A. RISE BY $200. B. RISE BY MORE THAN $200. C. FALL BY $200. D. FALL BY LESS THAN $200. E. NOT CHANGE.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the multiplier is 4, government spending rises by $200, and taxes increase by $200, equilibrium income will:

	A.	RISE BY $200.
	B.	RISE BY MORE THAN $200.
	C.	FALL BY $200.
	D.	FALL BY LESS THAN $200.
	E.	NOT CHANGE.

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