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9 December, 14:38

If the multiplier is 4 and there are no taxes, and government spending increases by $100 billion, real gdp will:

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  1. 9 December, 15:31
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    If the multiplier is 4 and there are no taxes, and government spending increases by $100 billion, real gap will increase by $400 billion.

    To solve:

    Take the multiplier and multiply it by the $100 billion.

    ($100 billion) (4) = $400 billion
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