The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increases spending by 250, how much will output increase by?
A. 50
B. 100
C. 200
D. 750
Answer:D
The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increases spending by 250, how much will output increase by?
A. 50 B. 100 C. 200 D. 750
Explanation: Type: Multiple Choice