When the Multiplier Is ________ , an Autonomous Decrease in Investment

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) 0.2; 0.4
C) 0.4; 0.2
D) $400 billion; $800 billion
E) 4.0; 8.0