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Suppose equilibrium income in an economy decreases by $600 as a result of a change in government spending. If the multiplier is 3, what

 

Suppose equilibrium income in an economy decreases by $600 as a result of a change in government spending. If the multiplier is 3, what is the change in government spending? Government spending will decrease by S1,800. Government spending will decrease by S600. Government spending will decrease by S200. Government spending will increase by $400. Government spending will increase by $1,200.

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