ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 9, Problem 5.11P
To determine
Amount by which government will have to increase its spending to achieve an increase in real
Introduction: The simple spending multiplier indicates how much the total spending increases, given a change in income. The spending multiplier is determined by the following equation:
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