If the government spending multiplier is 5 and government spending decreases by $200 billion

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If the government spending multiplier is 5 and government spending decreases by $200 billion

If the government spending multiplier is 5 and government spending decreases by $200 billion, output will _______ by $_______ billion.

Select one:

a. decrease; 200

b. increase; 200

c. decrease; 40

d. decrease; 1,000

economics

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