Multiple Choice
When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion. When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $800 billion.
A) 2.0; 4.0
B) 0.4; 0.2
C) $400 billion; $800 billion
D) 4.0; 8.0
E) 0.2; 0.4
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Induced expenditures are defined as that part
Q3: If aggregate planned expenditure equals GDP, then<br>A)
Q4: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The table above
Q5: Jane supports herself at university by working
Q6: As a household's disposable income increases, its
Q7: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The above table
Q8: A country reports that unplanned inventories increased
Q9: As a result of an initial increase
Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8401/.jpg" alt=" -The above table
Q11: When disposable income increases, consumption expenditure<br>A) does