A.
increases by $10 billion multiplied by the government expenditure multiplier.
This is the correct answer.B.
increases by $10 billion multiplied by the tax multiplier.
C.
decreases by $10 billion.
D.
decreases by $10 billion multiplied by the government expenditure multiplier.
E.
increases by $10 billion.
increases by $10 billion multiplied by the government expenditure multiplier.
This is the correct answer.B.
increases by $10 billion multiplied by the tax multiplier.
C.
decreases by $10 billion.
D.
decreases by $10 billion multiplied by the government expenditure multiplier.
E.
increases by $10 billion.
ANSWER
A.increases by $10 billion multiplied by the government expenditure multiplier.