The income multiplier with respect to the money supply

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If “the” multiplier is 6, the income multiplier with respect to the money supply is 4, and the money multiplier is 5, then which of the following policies increase income by $50 billion dollars?

a. Increase money supply by $2.5 billion.

b. Increase in government spending by $10 billion.

c. Fed purchase of $12.5 billion in bonds.

d. Increase in government spending by $3 billion and the money supply by $8 billion.

e. Fed sale of $2 billion in bonds and increase in government spending by $15 billion.

f. Fed purchase of $1 billion in bonds and increase government spending by $5 billion.

Reference no: EM13995340

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