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If the Investment Multiplier in an Economy Is 5, an Increase

Question 81

Multiple Choice

If the investment multiplier in an economy is 5, an increase in exports by $20 billion will:


A) increase GDP by any amount, since we do not know the investment multiplier.
B) increase GDP by $20 billion.
C) decrease GDP by $20 billion.
D) increase GDP by $100 billion.

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