Ultimate effect on the economy

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Question

If there is an injection of $5 million dollars what will be the ultimate effect on the economy?

It will increase by more than $5 million because of the multiplier. It will increase by exactly $5 million dollars since that is what the injection was. It will increase by less than $5 million because economies are always inefficient. It will increase by less than $5 million due to the multiplier.

Reference no: EM134039785

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