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When government spending increases by $1, planned expenditures increase by $1 O A. and the equilibrium level of income will increase by $1 times the spending multiplier. O B. and the equilibrium level of income will increase by $1. O C. and the equilibrium level of income will increase by less than $1. O D. times the spending multiplier and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expenditures A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier. B. increase by $1 and the equilibrium level of income will increase by $1 times the spending multiplier. O C. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier. O D. increase by less than $1 and the equilibrium level of income will increase by S1 times the tax multiplier.

When government spending increases by $1, planned expenditures increase by $1 O A. and the equilibrium level of income will increase by $1 times the spending multiplier. O B. and the equilibrium level of income will increase by $1. O C. and the equilibrium level of income will increase by less than $1. O D. times the spending multiplier and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expenditures A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier. B. increase by $1 and the equilibrium level of income will increase by $1 times the spending multiplier. O C. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier. O D. increase by less than $1 and the equilibrium level of income will increase by S1 times the tax multiplier.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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When government spending increases by $1, planned expenditures increase by $1 O A. and the equilibrium level of income will increase by $1 times the spending multiplier. O B. and the equilibrium level of income will increase by $1. O C. and the equilibrium level of income will increase by less than $1. O D. times the spending multiplier and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expenditures O A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier. O B. increase by $1 and the equilibrium level of income will increase by $1 times the spending multiplier. O C. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier. O D. increase by less than $1 and the equilibrium level of income will increase by $1 times the tax multiplier. Click to select your answer.
Transcribed Image Text:When government spending increases by $1, planned expenditures increase by $1 O A. and the equilibrium level of income will increase by $1 times the spending multiplier. O B. and the equilibrium level of income will increase by $1. O C. and the equilibrium level of income will increase by less than $1. O D. times the spending multiplier and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expenditures O A. increase by $1 and the equilibrium level of income will increase by $1 times the tax multiplier. O B. increase by $1 and the equilibrium level of income will increase by $1 times the spending multiplier. O C. decrease by $1 and the equilibrium level of income will decrease by $1 times the tax multiplier. O D. increase by less than $1 and the equilibrium level of income will increase by $1 times the tax multiplier. Click to select your answer.
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