Solved

Assume There Is No Government or Foreign Sector

Question 33

Multiple Choice

Assume there is no government or foreign sector. If the multiplier is 5, a $10 billion increase in investment will cause equilibrium output to increase by:


A) $10 billion.
B) $200 billion.
C) $5 billion.
D) $50 billion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q28: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 11.1 -Refer

Q29: Recall Application 1, "Falling Home Prices, the

Q30: Discuss an important difference between the government

Q31: If Jack received a $1,000 bonus and

Q32: When the consumption function is expressed as

Q34: Recall Application 2, "Using Long-Term Macro Data

Q35: Recall Application 1, "Falling Home Prices, the

Q36: The marginal propensity to import is<br>A) positive

Q37: An unexpected decrease in inventories has:<br>A) no

Q38: Suppose that planned expenditure is less than