Ignoring any supply-side effects

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Reference no: EM131159499

Ignoring any supply-side effects, to close a recessionary gap of $100 billion with a government expenditure multiplier of 5, the government could

A) increase government expenditure on goods and services by $20 billion.

B) decrease government expenditure on goods and services by $20 billion.

C) increase government expenditure on goods and services by $100 billion.

D) raise taxes by $100 billion.

E) raise taxes by more than $20 billion

Reference no: EM131159499

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