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    Macroeconomics Study Set 40
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    Exam 11: Expenditure Multipliers: They Keynesian Model
  5. Question
    If Investment Increases by $300 And, in Response, Equilibrium Aggregate
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If Investment Increases by $300 And, in Response, Equilibrium Aggregate

Question 358

Question 358

Multiple Choice

If investment increases by $300 and, in response, equilibrium aggregate expenditure increases by
$600, the multiplier is


A) 0.2.
B) 0.5.
C) 5.
D) 2.

Correct Answer:

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