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Business, 25.12.2019 05:31 dugochukwu12

Suppose the multiplier is 5 and the government increases its purchases by $15 billion. also, suppose the ad curve would shift from ad1 to ad2 if there were no crowding out; the ad curve actually shifts from ad1 to ad3 with crowding out. also, suppose the horizontal distance between the curves ad1 and ad3 is $55 billion. the extent of crowding out, for any particular level of the price level, is:
a) 20 billion
b) 30 billion
c) 10 billion
d) 40 billion

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