Solved

If the Multiplier Is 4, a Decrease in Spending Equal

Question 75

Multiple Choice

If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of

A) $480 billion.
B) $320 billion.
C) $240 billion.
D) $84 billion.
E) $48 billion.

Related Questions

Q70: If total spending is greater than current

Q71: Equilibrium GDP occurs when total spending equals

Q72: A rising price level should shift the

Q73: Coordination failures can exist in both capitalist

Q74: The reason for the multiplier effect is

Q76: The amount by which equilibrium real GDP

Q77: Market economies are likely to suffer from

Q78: The multiplier principle is built on the

Q79: U.S.exports<br>A)rise as our GDP rises, and fall

Q80: A level of GDP cannot be at