menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Economics for Today Study Set 6
  4. Exam
    Exam 19: The Keynesian Model in Action
  5. Question
    If the Spending Multiplier Is Equal to 4, Then a $25
Solved

If the Spending Multiplier Is Equal to 4, Then a $25

Question 94

Question 94

Multiple Choice

If the spending multiplier is equal to 4, then a $25 initial increase in investment spending will lead to a:


A) $100 increase in real GDP.
B) $1 decrease in real GDP.
C) $1 increase in real GDP.
D) $100 decrease in real GDP.

Correct Answer:

verifed

Verified

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

Related Questions

Q89: If the marginal propensity to consume (MPC)

Q90: On the graph of GDP, government spending

Q91: To close a recessionary gap using fiscal

Q92: In the aggregate expenditures model, if aggregate

Q93: Suppose equilibrium real GDP is currently at

Q95: When the spending of consumers, businesses, government,

Q96: If the marginal propensity to consume (MPC)

Q97: Using the aggregate expenditure-output model, assume the

Q98: Exhibit 9-3 Keynesian aggregate expenditures model<br>​<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"

Q99: Exhibit 9-3 Keynesian aggregate expenditures model<br>​<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX8793/.jpg"

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines