If Government Expenditure on Goods and Services Increase by $10

Multiple Choice

If government expenditure on goods and services increase by $10 billion, then aggregate demand

A) increases by $10 billion.
B) increases by $10 billion multiplied by the government expenditure multiplier.
C) increases by $10 billion multiplied by the tax multiplier.
D) decreases by $10 billion.
E) decreases by $10 billion multiplied by the government expenditure multiplier.